7 big changes coming to Social Security in 2026 (including one that could shrink your check)

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7 big changes to Social Security in 2026 — and one could shrink your check (JJ Gouin via Getty Images)

If you’re among the 74.5 million Americans receiving Social Security benefits (or planning to claim them soon), 2026 brings with it a wave of changes that affect your retirement. Some are routine annual adjustments, while others mark bigger shifts — like redefining full retirement age for the first time in decades.

Here’s what’s changing, what it means for your benefits and steps to take right now.

1. Cost-of-living adjustment rises (with caveats)

The 2026 cost-of-living adjustment (COLA) is projected at 2.7%, according to the Senior Citizens League — slightly higher than 2025’s 2.5% bump but well below spikes earlier this decade, such as 5.9% in 2022 and 8.7% in 2023.

With the average monthly Social Security benefit at $1,955 as of September 2025, this small boost translates to roughly $53 more a month — or about $633 a year. Unfortunately, much of that bonus may be offset by rising Medicare Part B premiums.

The Social Security Administration typically announces the official COLA in mid-October, after September’s inflation numbers are released. But there’s a wrinkle this year: The Bureau of Labor Statistics (BLS), which provides that data, is caught in the current government shutdown.

BLS announced on October 13 it’s bringing back workers to focus on September’s CPI report, postponing numbers until October 24 — nine days after its original release. While you might have to wait a little longer to hear the announcement, it shouldn’t affect your actual raise in January 2026.

2. Full retirement age officially hits 67

Starting in 2026, the full retirement age (FRA) officially changes to 67 for people born in 1960 or later — the final step in a gradual shift that began in the 1980s.

It means that if you turn 62 in 2026, you’ll need to wait five more years to claim your full Social Security benefits. Of course, you can still file at 62, but claiming early permanently reduces how much you’ll receive by as much as 30%. On the flip side, delaying until after your FRA can boost your benefits by 8% a year until age 70.

In short, 67 is now the standard retirement age for future retirees, officially closing the decades-long transition from 65.

3. High earners to pay more in taxes

Each year, the government adjusts how much of your income is subject to Social Security’s 6.2% payroll tax. In 2025, that wage cap sits at $176,100.

For 2026, it’s projected to climb to roughly $183,600 — $7,500 more than last year. It means higher-income workers could pay up to $465 more in Social Security tax. Since employers match that contribution, the combined hit could reach about $930.

4. Earnings test limits rise for working retirees

If you’re working while collecting benefits, but younger than your full retirement age, the earnings test limits how much you can earn without affecting your Social Security check.

The earnings test rules change significantly in the year you reach full retirement age (FRA). For 2025, if you’re under your FRA for the entire year, you can earn up to $23,400 before triggering benefit reductions. Beyond that, Social Security withholds $1 for every $2 you earn over the limit.

In the year you’re reaching FRA, the earning limit jumps to $62,160 up to a month before your birthday, and the penalty drops to $1 for every $3 you earn over it. Once you hit FRA, there’s no earnings cap.

For 2026, these limits are projected to increase to about $24,360 and $64,800, respectively — giving working retirees slightly more breathing room.

5. Work credits and SSI thresholds rise

To qualify for Social Security benefits, you need 40 credits earned through payroll taxes throughout your career. In 2025, you earn one credit for every $1,810 in covered earnings, with a maximum of four credits a year. That means you need to earn at least $7,240 in 2025 to max out your annual credits.

For 2026, the threshold is expected to rise slightly to reflect wage growth, meaning you’ll need to earn a bit more to collect the same credits. Full-time workers will still earn their annual four credits. But for part-time workers or people with irregular work histories, the higher threshold means it may take longer to qualify for benefits.

Similarly, Supplemental Security Income (SSI) — the benefit program for low-income seniors and people with disabilities — will see a small boost tied to the COLA.

In 2025, the federal maximum is $967 a month for one person and $1,450 for a couple. For 2026, these amounts are projected to increase alongside the COLA, though actual amounts won’t be finalized until the COLA announcement.

6. Social Security Fairness Act takes full effect

One of the most significant reforms in decades continues to unfold in 2026, thanks to the Social Security Fairness Act (SSFA). Signed into law on January 5, 2025, the SSFA eliminates two controversial rules that have eaten into retirees’ earnings: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

These rules previously reduced Social Security benefits for more than 3 million public sector retirees who receive pensions from jobs that didn’t pay into Social Security — such as teachers, firefighters, police officers and other state and local government workers.

With their repeal now in effect, many retirees are receiving their full Social Security benefit for the first time, often seeing significant increases in their monthly checks.

7. Long-term funding crisis looms

Despite these changes, Social Security faces a serious funding challenge. According to the SSA’s 2025 Trustees Report, the combined Old-Age and Survivors Insurance (OASI) and Disability Insurance trust funds are projected to be depleted by 2034. At that time, incoming payroll taxes would cover only about 80% of scheduled benefits — meaning cuts of roughly 20% unless Congress acts.

Many reform ideas are on the table — increasing the payroll tax rate, eliminating the taxable wage cap, adjusting benefit formulas (particularly for higher earners), tweaking the COLA calculation and even raising the full retirement age beyond 67.

While none of these changes are imminent, the clock is ticking. With depletion expected in less than a decade, meaningful action is needed to avoid cuts for both today’s retirees and those entering retirement soon.

Your Social Security checklist

A few smart moves today can help you maximize your benefits and avoid costly mistakes later.

Watch for the official SSA announcement. The Social Security Administration is expected to release final 2026 figures for COLA, tax caps and earnings thresholds this week. COLA should be announced just after September’s postponed CPI report on October 24. If the shutdown drags on, you might have to wait a little longer for other updates.
Revisit your claiming strategy. The Social Security benefit you receive depends on when you claim. If your full retirement age is 67, now’s the time to run the numbers. Consider how claiming at 62, at your FRA or delaying until 70 affects your lifetime income — especially if your spouse gets benefits or you have pensions.
Verify your earnings record. Set up your Social Security account at SSA.gov and review your wage history. Mistakes are surprisingly common — and can permanently reduce your benefit amount. Correct any errors with the SSA at 800-772-1213, through an online support form or at your local office.
Account for Medicare increases. Medicare Part B premiums are typically deducted from your Social Security check, and higher premiums in 2026 could eat into your COLA raise.
Consider working or delaying benefits longer. Even one extra year of work can boost your monthly benefit, especially if that year replaces a lower-earning year in your work history. Delaying benefits past your FRA can protect against outliving savings.

Bottom line: Small moves today, bigger checks tomorrow

While 2026 won’t bring radical changes to Social Security, it marks an important milestone. The full retirement age finally reaches 67 for all new retirees, COLA and income thresholds continue nudging higher, and the elimination of WEP and GPO delivers full benefits to roughly 3 million public-sector retirees for the first time.

But a larger conversation looms: Trust funds are projected to deplete in 2034, and Congress will need to address long-term solvency sooner than later, potentially reshaping Social Security for generations.

For now, the best move is to stay proactive: Verify your earnings record, understand how changes affect you and adjust your retirement strategy around these new realities. Make sure your plan shifts along with the new rules.

About the writer

Michael Kurko is a finance writer and editor who covers investing, real estate, personal budgeting and financial literacy. His expertise has been featured in FinanceBuzz, The Balance, Investopedia, U.S. News & World Report and Forbes Advisor, among other top financial publications. In addition to his work in finance, Michael is also a freelance book editor and fiction writer. He strives to make complex money topics clear and approachable so readers can make informed decisions and build lasting financial confidence.

Edited by Kelly Suzan Waggoner

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