6 Social Security Changes Coming in 2026 That Impact Everyone

Social Security is a cornerstone of retirement income, and every adjustment can have a big effect on seniors' budgets. As 2026 approaches, several significant changes are expected to reshape benefits, taxes, and eligibility rules. Staying informed now can help you avoid wasting your retirement savings later.

Here are six changes you need to know about for 2026.

The Social Security cost-of-living adjustment (COLA) is projected to be just 2.7% in 2026, according to The Senior Citizens League. While slightly higher than last year's COLA of 2.5%, just 2.7% may not be enough to keep up with the rising cost of living.

Retirees still have to spend on housing, food, and healthcare each month, and they aren't immune to the effects of inflation — the average Social Security check may only increase by $54.18 per month in 2026, based on the average Social Security check of $2,006.69 as of July 2025. This means monthly checks may feel smaller in purchasing power, even if the dollar amount rises slightly.

Each year, there is a cap on the amount of wages subject to Social Security payroll taxes. In 2026, the maximum taxable earnings limit will rise again, meaning higher-income workers will pay taxes on a larger portion of their earnings. The current Social Security tax limit in 2025 is $176,100 for an individual; however, this figure is estimated to increase to $183,600 in 2026.

This change helps strengthen the program's funding but increases the tax burden on those with salaries above the threshold. For retirees who are still working, this could reduce their take-home pay.

Starting in 2026, the full retirement age (FRA) will rise to 67 for those born in 1960 or later. That means if you claim benefits before reaching 67, your monthly payments will be permanently reduced.

The change reflects longer life expectancies and aims to preserve Social Security's solvency. Future retirees may need to plan for a longer wait time before receiving full benefits.

Starting with the 2025 tax year, which retirees will file in 2026, the One Big Beautiful Bill introduces a special deduction aimed at easing the tax burden on lower and middle-income older Americans. Retirees aged 65 and older will be able to claim a $6,000 bonus deduction, or $12,000 if married and filing jointly, through 2028.

This change is designed to lower the number of beneficiaries who owe federal taxes on their Social Security benefits. However, the deduction phases out once modified adjusted gross income (MAGI) exceeds $75,000 for single filers or $150,000 for married couples filing jointly, and disappears entirely for individuals earning above $175,000 or married couples filing jointly earning more than $250,000.

For those who claim Social Security before FRA, the earnings test limits how much you can make from work without reducing benefits. In 2026, that threshold will increase, allowing seniors to earn more while still collecting monthly payments.

In 2026, the annual limit for those younger than FRA will rise to $24,360 (up from $23,400 in 2025), with $1 withheld from benefits for every $2 earned above that threshold. For those who will reach FRA in 2026, the earnings limit increases to $64,800 (up from $62,160 in 2025), with $1 withheld for every $3 earned over that amount until the month they hit FRA. After reaching FRA, there is no earnings cap, and any withheld benefits are eventually credited back.

Eligibility for Social Security benefits depends on earning at least 40 work credits over your lifetime, and you can earn up to four credits annually. In 2025, one credit equals $1,810 in earned income. So, if you earn $7,240 this year, you'll have collected your maximum four work credits.

In 2026, the amount you'll need to earn to get one credit will rise, as it does each year. Workers will need to make more money to secure each credit, which could make it harder for part-time or lower-income employees to qualify.

Social Security is entering a new phase in 2026, with changes that affect everyone from new workers to lifelong retirees. Smaller COLA increases, higher taxable earnings, and new income thresholds are just a few of the adjustments shaping the program.

Looking ahead, the Social Security Administration will likely continue to adapt rules to maintain the program's stability. Staying informed about these updates can help you maximize your senior benefits and protect your long-term retirement security.