Millions of retirees who are still working after claiming Social Security benefits are about to enjoy a double win in 2026. The government has confirmed two major wins for working retirees: higher earnings limits before any withholding applies and a 2.8% cost-of-living adjustment (COLA) that boosts their monthly checks.
Besides these two major wins, retirees will also enjoy more wins such as faster online services, a higher taxable wage base, and delayed retirement credits that boost benefits for retirees who delay claiming their benefits. Together, all these changes make 2026 a year that will give most retirees some much-needed breathing room, more benefits, and improved services.
A 2.8% COLA Boost for 2026
According to the Social Security Administration (SSA), Social Security benefits will increase by 2.8% in 2026. This will be a slight increase from a 2.5% COLA in 2025. Following the 2.8% COLA, retirees can expect to receive a monthly check rise of about $56, bringing the average check to about $2,071. Married couples could see a combined rise of about $88, lifting their monthly payments to about $3,208 per month.
Despite the boost, inflation continues to squeeze Social Security benefits, especially as Medicare Part B premiums are set to jump 11.6% in 2026. However, the COLA boost will help offset essentials such as housing, healthcare, and utilities whose costs are also on the rise.
Working retirees will also receive the 2.8% COLA boost beginning in January 2026.
The Full Retirement Age Finally Reaches 67
Starting in November 2026, the Full Retirement Age (FRA) will officially rise to 67 for everyone born in 1960 or later. Therefore, anyone turning 67 next year will have to reach that age to claim their full benefit. Filing even a year early will result in about a 6.7% reduction in monthly benefits.
While the increase in FRA may seem like a hurdle, those who wait will receive bigger benefits. Retirees who wait until their FRA will earn delayed retirement credits of roughly 8% per year until age 70.
Higher Earnings Limits for Working Retirees
The earnings test thresholds, which determine how much working retirees can earn before part of their Social Security is withheld, will increase in 2026. In 2025, if you are under FRA age all year, you will be able to earn $23,400 per year without losing a dollar in taxes, but starting in 2026, you will be allowed to earn up to $24,480.
On the year when you attain your FRA, the limit jumps to $65,160, which is about $5,430 per month. Once you reach the FRA, the cap is eliminated, meaning that you can earn any amount without risking a reduction to your benefits. Additionally, the SSA also makes up for any withholdings by increasing your check for a lifetime once you hit FRA. This is to ensure that you don’t lose money over the long term. The higher thresholds will enable working retirees to keep more of their earnings while still collecting benefits.
Slightly Higher Taxable Wage Base
For those still working, the maximum amount of income subject to Social Security tax will rise from $176,100 in 2025 to $184,500, even after claiming benefits. Since a 6.2% tax applies to this income for both the employee and employer, the maximum employee contribution will rise to $11,439 in 2026.
This means that high earners will pay an extra $521 in taxes. This change will strengthen the Social Security trust fund, which supports future benefits.
Faster Online Services and ID Verification
In addition to all these changes, 2026 will see the continued rollout of digital ID verification through the My Social Security platform. This will allow retirees to manage updates, such as direct deposits, and address changes online. The online platform also has stronger security protections to ensure that confidential data for all beneficiaries is secure.
Previously, it took almost 30 days to update direct information as a fraud prevention measure. Now, changes to such confidential data will take just one business day.