Many changes have been set in motion regarding the Social Security program. Some changes are mere days away from coming into effect, while the effects of others will only be felt in the new year. Here is everything you need to know, starting with the change that is less than a week away: the end of paper check disbursements from the Social Security Administration (SSA).
End of paper checks
On July 14th, the SSA issued an update on its blog explaining that the agency will be transitioning all of its payment methods to electronic ones as of September 30th. This change is being made in accordance with a March 25th executive order from the White House aimed at modernizing all payments to and from what is considered America’s bank account.
Both the executive order, and the SSA’s announcement cite facts such as increased speed and efficiency, enhanced security, and cost savings as its rationale behind this change. Citing the U.S Department of Treasury, the SSA further explains that an EFT costs less than 15 cents, while issuing a paper check costs 50 cents.
“Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud. Electronic payments provide a safer, more secure way to receive benefits,” the SSA added.
As such, all paper check recipients (which amounts to less than one percent of the total beneficiaries) are being encouraged to switch their payment methods over to a Direct Deposit before September 30th. If the beneficiary does not have a bank account, they should enroll in a Direct Express Card.
2026 COLA
Each year, benefit amounts are increased by a modest percentage in order to counter the effects of year over year inflation. This is known as the COLA, or Cost Of Living Adjustment, and in 2025, the COLA came in at 2.5%. The COLA is determined using third quarter CPI-W data as measured year over year. If there is an increase from the previous year to the current year, the percentage by which the CPI-W increased becomes the next COLA. The SSA will announce the 2026 COLA on October 15th.
Using data available to date, experts such as The Senior Citizen’s League and independent analyst Mary Johnson have projected a 2026 COLA of 2.7% and 2.8% respectively. The unfortunate news for seniors, however, is that Medicare Part B premiums are also projected to increase by almost 12%. Since the Part B premium is automatically deducted from Social Security benefits, many seniors will lose a chunk of their COLA increase before their benefit even hits their bank accounts.
Full Retirement Age
Social Security can be claimed from age 62, however, this is not considered as the Full Retirement Age (FRA), and as a result, your benefits will be subject to a reduction of up to 30% depending on how many months there are between the age at which you claim and your Full Retirement Age. Since the 1983 Amendments, the FRA has been gradually increasing until it reaches 67 years of age. In 2025, the FRA increased to 66 years and 10 months for those born in 1959.
In 2026, the FRA is slated to increase one final time as per the amendments, bring the FRA up to 67 years of age for those born in 1960 and later. Despite recent speculation pertaining to the projected shortfall of the Social Security program, the SSA Commissioner has confirmed that the FRA will not be increased further as a solution to prevent the upcoming insolvency outlined in the Social Security annual report.
Wage cap increase
In order to claim benefits upon retirement, you will need to earn work credits by paying into the Social Security payroll tax during your working years. A total of 12.4% of your earnings are contributed towards the payroll tax, however, you will typically only pay in 6.2% and your employer will cover the other 6.2%. Additionally, there is a maximum taxable earnings or wage cap figure in place as well. In 2025, the wage cap is $176,100, which means that any income exceeding this figure is not considered when you pay into the payroll tax.
According to estimates from the 2025 Social Security Board of Trustees report, “the maximum taxable earnings limit will be $183,600 in 2026, an increase of $7,500 from the 2025 ceiling of $176,100.”