The beginning of a new year is often a marker for change and in terms of the Social Security program, this sentiment holds true as well. As the 2025 year begins wrapping up, here are three important changes to the Social Security program for 2026 worth keeping in mind, particularly if you are already retired and are claiming benefits from the Social Security Administration (SSA).
2.8% Cost of Living Adjustment for all benefits in 2026
The Cost of Living Adjustment (COLA) is an increase implemented to benefits annually in order to counter the effects of growing inflation rates. The SSA measures the third quarter CPI-W of the current year against the third quarter CPI-W of the previous year. If there is an increase from the previous to current year, all benefits will be adjusted proportionately in the upcoming year. In 2025, the COLA brought seniors across the country a 2.5% increase. On October 24th, the SSA officially announced the 2026 COLA to be a 2.8% increase for all benefits as of January 2026.
The COLA affects not only retiree benefits, but all benefits issued by the SSA, including the Supplemental Security Income. As per data from the SSA, average Social Security benefits will be increased due to the 2.8% COLA boost as follows:
- Retiree benefits — the average retiree benefit of $2,008 in 2025 will be increased by $56 to $2,064 in 2026
- Spousal benefits — the average spousal benefit of $954 in 2025 will be increased by $27 to $981 in 2026
- Survivor benefits — the average survivor benefit of $1,575 in 2025 will be increased by $44 to $1,619 in 2026
- Disability benefits — the average disability benefit of $1,583 in 2025 will be increased by $44 to $1,627 in 2026.
With regards to the Supplemental Security Income, the SSA has also shared that, “the monthly maximum Federal amounts for 2026 are $994 for an eligible individual, $1,491 for an eligible individual with an eligible spouse, and $498 for an essential person.”
Since the COLA is a percentage increase, the actual dollar amount any one beneficiary will receive will likely vary from one person to the next. The SSA has also stated that it will begin mailing out personalized notices as of early December. Alternatively, beneficiaries can view their personalized COLA increase online via their my Social Security account as it will be available by late November. The agency does, however, note that the user’s account will need to be set up by November 19th latest.
Higher maximum benefit for 2026
Since the SSA limits how much of your income is considered when making your Social Security payroll tax contribution, it also has a maximum amount it will pay out in benefits. This limit on your tax contribution is known as the wage cap and it is determined in relation to national average wages and inflation. In 2025, the wage cap is $176,100, however, this will be increasing to $184,500 in 2026.
Between the higher wage cap and the COLA increase of 2.8%, the maximum benefit paid out by the SSA will also be increasing in 2026. According to the SSA, the maximum benefits that will be paid out at various ages in 2026 are as follows:
- Claiming at age 62 = a maximum benefit of $2,969 in 2026
- Claiming at age 65 = a maximum benefit of $3,467 in 2026
- Claiming at age 67 (full retirement age) = a maximum benefit of $4,207 in 2026
- Claiming at age 70 (delayed retirement) = a maximum benefit of $5,181 in 2026
Higher retirement earnings limits
If you claim benefits before reaching FRA and are still working, a portion of your benefit will be withheld if your income exceeds certain thresholds. These income limits are slated to increase in 2026 as follows:
- If you will not reach FRA for the full year in 2026, the income limit before your benefits are withheld is $24,480. For every $2 you earn above this limit, $1 of your benefit will be withheld.
- If you are going to reach FRA within the year in 2026, the income limit before your benefits are withheld is $65,160. For every $3 you earn above this limit, $1 of your benefit will be withheld.