Social Security is an insurance program that has been providing vulnerable Americans with a stable income during their retirement years or in the event of disability for close to a century now. Much like any longstanding program, Social Security has undergone various changes and tweaks over the years. For instance, the 1983 amendments brought a gradual increase to the Full Retirement Age in order to account for increasing life expectancy. The Full Retirement Age (FRA) will finally reach 67 years of age as of 2026 and at this point it will no longer be increased.
Whilst the 1983 amendment was more of a major change, there are several other changes that often occur that could be considered to be more minor. Here are five upcoming changes to the Social Security program that beneficiaries should keep an eye out for.
Five upcoming changes and adjustments to the Social Security program
1. Annual Cost of Living Adjustment
The effects of inflation plays no favorites and impacts every single individual. For those on a fixed income, an increase in cost of living expenses could cause a significant financial strain on the state of these households. As such, in order to allow the money of these individuals on a fixed income to retain its buying power in the face of inflation, beneficiaries of Social Security receive an annual adjustment to their benefit amounts. This is known as the Cost of Living Adjustment, or COLA.
The COLA is determined by using data from the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The third quarter CPI-W data of the current year is compared to the third quarter CPI-W data of the previous year. If there is an increase, which there often is, that figure becomes the COLA for the upcoming year.
For 2025, the COLA was 2.5% meaning that benefit amounts were increased by 2.5%. Early predictions for the 2026 COLA have been standing at 2.4%, however, this figure could still change as the third quarter of the current year has not yet passed.
2. Wage cap increase
Social Security is funded primarily through dedicated payroll taxes where the employee pays 6.2% and the employer matches this (self-employed individuals pay the full 12.4%). There are also the OASI and DI trust funds that supplement this source of revenue. The maximum taxable income for 2025 is $176,100, however, this wage cap is changed annually meaning that an increase in 2026 is quite likely.
3. New maximum monthly benefit
The taxable wage cap for Social Security payroll taxes that is in place goes hand in hand with a maximum benefit cap. As most beneficiaries know, claiming earlier than their FRA will result in a decrease to their benefits, whilst delaying claiming beyond the FRA will result in an additional bump to their benefit amount. For 2025, the maximum benefit for those claiming at FRA is $4,018. For 2026, however, this figure will most probably increase.
4. New earnings test limit
Social Security benefits can be claimed from age 62, however, the Full Retirement Age for 2025 is 66 years and ten months for those born in 1959. Subsequently, if a retiree decides to claim benefits earlier than their FRA, they will then be subject to an earnings test limit. This limit indicates the maximum amount the beneficiary can earn from their place of employment before being at risk of having their benefits reduced.
Beneficiaries “lose $1 per $2 of earnings above $23,400. Those reaching FRA this calendar year lose $1 per $3 of earnings above $62,160.” In the upcoming year, these limits are potentially going to increase.
5. Increased threshold for earning work credits
Forty work credits have to be acquired by a worker during their time of employment in order to be considered eligible for Social Security benefits during retirement. A maximum of four credits can be earned per year and the value of one work credit stands at $1,810 currently, however, it will most probably be increased in 2026.