There are big changes coming to Social Security and it will impact almost all retirees and even those planning for retirement. These seven major changes will change how benefits are calculated and paid out.
Some of these changes mean bigger checks, while others may affect when you can retire or how much you’ll pay in taxes.
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Cost-of-Living Adjustment (COLA) Is Going Up — But Don’t Expect a Huge Raise
The COLA is an annual raise and is meant to help Social Security beneficiaries keep up with the rising costs of inflation. The 2026 COLA is expected to be around 2.8%, though modest, but will still help those who live on fixed incomes.
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Full Retirement Age Officially Becomes 67
Another major change is the Full Retirement Age (FRA). The FRA has now reached 67 for anyone who was in 1960 or later.
In simple terms, this means that in order for you to receive your full Social Security benefit, you need to until age 67 to start collecting benefits. Yes, you can retire from age 62 but remember that your benefits will be permanently reduced.
In addition to this, if you wait until age 70, you can potentially increase your monthly check and get the maximum out of your benefits.
In short, patience pays off, but planning ahead is key.
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High Earners Will Pay More in Social Security Taxes
If your salary is higher, be ready to make a somewhat larger contribution the next year. The maximum income that is subject to Social Security payroll tax, known as the taxable wage base, is increasing from $176,100 to about $183,600.
This simply means that any income more than $183,600 won’t be taxed for Social Security purposes, but those earning close to that amount will see a slightly larger payroll deduction in 2026.
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Working Retirees Can Earn More Before Benefits Are Reduced
There are many retirees who want to continue working even after they retire, some need to work to cover their bills and some choose to work just to keep busy.
The good news is that the earnings limit is increasing. In addition to, it’s important to stay within the limit because for every $2 earned over the limit, the SSA will temporarily withhold $1 in payments. Be sure to check the Social Security website for verified information
As soon as you reach FRA, you can earn as much as you want without losing any benefits.
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Work Credits and SSI Income Limits Are Increasing
The minimum earnings required to be eligible for Social Security work credits increases little each year. In 2025, you receive 1 credit for each $1,810 of earnings, up to the maximum of 4 credits per year. The credits you earn remain on your record even if you change jobs or have no earnings for a while.
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The Social Security Fairness Act Takes Effect
Another major change was the implementation of the Social Security Fairness Act which repealed the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
These two rules had long reduced benefits for teachers, firefighters, police officers, and other government employees who also received a pension.
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The Long-Term Funding Problem Isn’t Going Away
An important point that came about is the fact that Social Security is facing a funding crisis. As per the latest projections, the Social Security trust fund is expected to be depleted by 2034 if no changes are made. This would lead to a cut in benefits.
The Bottom Line
Yes, Social Security is changing and it’s important that beneficiaries keep updated with the changes to ensure that they get the maximum out of their benefits. Be sure to consult with a financial advisor if you require assistance making any financial decisions.