Retirement Social Security

You Have Less Than 2 Weeks to Prepare for 4 Big Social Security Changes

New Social Security rules start in January, and time is running out.

By David Maina

Edited by Laura Hohenstein

Updated Dec. 19, 2025

Two weeks doesn't feel like much time, but in retirement planning, it can slip by faster than you think. And that's all the time you have before several major Social Security changes take effect on January 1.

These updates can influence your 2026 income, reshape your budget, and affect how far you can maximize your senior benefits next year.

The good news is that two weeks still give you room to act. Below, you will see the four changes that deserve attention now and what you can do before the clock runs out.

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A modest COLA that needs careful planning

Social Security adjusts benefits for inflation each January. In 2026, the cost-of-living adjustment (COLA) comes in at 2.8%, and that raises the average retired worker's check from about $2,015 to $2,071 a month, roughly a $56 bump.

Many retirees still worry that 2.8% will not cover rising costs. Fuel, rent, and medical bills often grow faster than the index used for COLA. In fact, many older adults feel that even a 3% bump does not match their real expenses. Still, the 2026 increase sits slightly above the long-term average of 2.6%.

Watch for your official COLA notice in late December, but you might see it sooner if you use a mySocialSecurity account. Once you know your exact amount, plug it into your 2026 budget. A $56 boost isn't huge, but it can still ease small monthly expenses like groceries or utilities.

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New earnings limits for working retirees

If you take Social Security before full retirement age (FRA) and keep working, the earnings test will shape how much of your check you actually receive.

For 2026, the limit for people younger than FRA all year rises to $24,480. The higher limit for those who reach FRA in 2026 climbs to $65,160 for the months before their birthday.

If your work income passes those thresholds, the Social Security Administration (SSA) withholds part of your benefit:

$1 for every $2 over $24,480
$1 for every $3 over $65,160

These reductions can feel harsh, but they're temporary. Once you reach FRA, SSA adjusts your benefit to credit back the months that were withheld, so future checks rise. Still, this rule can strain your cash flow if you earn more than expected.

If you plan to work in 2026, estimate your income now. You can delay your claim, reduce hours, or talk with a planner to see which option gives you the best net income.

And to avoid surprise bills from SSA later, report expected earnings through your mySocialSecurity account so withholding is accurate from the start.

A steep Part B jump that shrinks your net benefit

One of the biggest hits to retirees' take-home income in 2026 is the higher Medicare Part B premium.

The Centers for Medicare & Medicaid Services has set the standard monthly premium at $202.90, up from $185 this year. That's a $17.90 increase, and about a 9.7% jump. The annual Part B deductible also rises from $257 to $283.

Because Social Security deducts Part B premiums from most monthly checks, this $17.90 increase will take a large bite out of the 2.8% COLA. If your benefit rises by about $56, expect roughly $18 of that lift to disappear before it reaches your bank account.

To avoid getting caught off guard, update your budget or bill-pay schedule now for the higher premium.

And if the increase strains your income, look into support programs. For instance, Medicare Savings Programs can cover some or all of your Part B premium, and Extra Help can help reduce drug costs.

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Bigger tax bill ahead for high earners

On January 1, the Social Security payroll tax cap jumps again. The wage base subject to the 6.2% Social Security tax rises from $176,100 in 2025 to $184,500 in 2026. If your income crosses that line, you'll pay the 6.2% tax on a bigger slice of your wages before the tax stops for the year.

For employees, this simply means your FICA withholding is larger if your pay exceeds the old limit. Your employer also pays 6.2% up to the same ceiling.

Self-employed workers feel the increase more. They pay both sides of the Social Security tax, or 12.4%, on net earnings. In 2026, that 12.4% applies up to $184,500 instead of $176,100, so your 2026 tax estimates and quarterly payments should reflect the higher cap.

If you're planning ahead for 2026, make sure your budget or withholding accounts for these higher taxable wages.

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Bottom line

These changes roll out automatically, but a quick review now can make the start of 2026 far easier. Look over your paycheck withholdings, insurance premiums, and monthly budget so everything matches the new numbers and you can make the right moves for the year ahead.

If anything feels unclear or the changes squeeze your finances, talk with a trusted advisor or check the Social Security Administration's website for guidance. This way, you can enter 2026 knowing exactly what will land in your check, and that confidence makes the transition easier.

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