5 Big Social Security Changes in 2026 That Might Catch Retirees Off Guard

Most people hear "Social Security changes" and immediately focus on the yearly cost-of-living adjustment (COLA). For 2026, that's 2.8%, and the average retired worker's gross benefit has risen from around $2,015 per month to $2,071.

Beyond COLA, there are plenty of other changes that can take you by surprise and have a significant impact on how much of your benefit you actually receive. Changes in taxes, earnings test thresholds, disability rules, and Medicare premiums can make a big difference between your gross benefit and what actually ends up in your bank account.

Unless you're aware, it's easy to get caught off guard, and that can quickly derail your retirement plan. Here's what you should know. 

Medicare premiums are likely eating a chunk of your raise

For many retirees, one of the biggest shocks comes when they compare COLA to rising Medicare costs. In 2026, the standard Medicare Part B premium has increased from $185 to $202.90 per month. That's a jump of $17.90, or almost 10%, compared to the COLA raise of just 2.8%. The Part B deductible also climbs from $257 to $283, which has likely made it harder to stretch your retirement dollars. 

That $17.90 premium hike swallows roughly a third of the average $56 increase for retirees.

Plus, those who fell into a higher income bracket in 2024 may be facing income-related monthly adjustment amount charges (IRMAA) on both Part B and D. This two-year look-back may have taken you by surprise, especially if your income has since substantially decreased. If the income decrease is because of a significant life change, you can ask the SSA to reconsider.

The Social Security tax cap has jumped to $184,500

If your spouse still works or you expect to work into your 60s, changes to the Social Security tax cap can catch you off guard because it can change how much tax you owe. Social Security only taxes wages and self-employment income up to a specific amount for old age, survivors, and disability insurance (OASDI). In 2025, that threshold was $176,100. In 2026, that cap has risen to $184,500.

OASDI tax stays at 6.2% for employees or 12.4% if you're self-employed. That means that up to $8,400 more of your earnings are subject to taxation this year.

This extra tax burden may have come as a nasty surprise if you didn't budget for it. But the higher earnings can increase your eventual benefit by replacing lower-earning years in your 35-year record.

There's been an increase in the retirement earnings test limits

Claiming Social Security before full retirement age (FRA) while you are still working triggers the retirement earnings test. In the years before you reach FRA, you can now earn up to $24,480 per year, or $2,040 per month, without triggering withholding. If you earn more than this, the SSA withholds $1 for every $2 you earn.

In the year you reach FRA, you can earn up to $65,160 before withholding kicks in. And when it does, it drops to $1 for every $3 that you earn. And the test ends at the start of the month that you reach full retirement age.

Take a look at your projected earnings so you know whether you're likely to trigger the earnings test. That way, you won't find yourself struggling for money because your check was short or withheld.

The amount SSA withholds isn't lost forever. When you reach FRA, SSA recalculates your benefit to credit you for the months when benefits were withheld.

SSI benefits and disability thresholds have moved up

For older adults with limited income and resources, the federal Supplemental Security Income (SSI) benefit has risen this year. The maximum monthly federal payment has increased from $967 to $994 for individuals, and from $1,450 to $1,491 for joint claimants. Then there's the "essential person" rate, used when someone lives with you primarily to care for you. This rate has increased from $484 to $498 per month in 2026. But don't assume that any state supplements you get will also increase at the same rate, or at all.

The disability thresholds have also moved higher. In 2026, substantial gainful activity (SGA) has increased to $1,690 per month for most disabled workers, up from $1,620 in 2025. Blind recipients can now earn up to $2,830 per month instead of 2025's $2,700 limit. And, the trial work period (TWP) amount has increased to $1,210.

Yes, this means that if you're on disability, you can now earn a little more without exceeding the TWP cap, but you still need to keep careful records. If you get complacent, you may find yourself no longer eligible to receive benefits. Make sure to report all work activity promptly to the SSA to avoid overpayments and surprise benefit cuts.

You need more earnings to get work credits

To qualify for Social Security retirement benefits, you need 40 work credits. You accrue these at a maximum of four per year, based on your annual covered earnings. In 2026, the amount of earnings you need for one credit has increased from $1,810 to $1,890. But you can still only earn four per year.

If you are semi-retired, self-employed, or working seasonally and still need credits to qualify for your retirement benefit, it's worth checking whether the work you have planned for this year will give you the full four credits you need.

Bottom line

Higher Medicare premiums, a bigger Social Security tax cap, shifting earnings limits, and updated disability and SSI rules all work together to determine how much you pay in, how much you get out, and how far your check will really stretch this year.

Your best course of action is to understand what changes have taken place and how they affect you. Check your COLA notice in your "my Social Security" account to see your gross benefit, what deductions you've got, and the net amount you're receiving. Avoid common senior money mistakes by staying on top of these changes.

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