Due to the major changes coming to Social Security, those planning to retire in 2026 should prepare and take the necessary steps. Some of the changes include a higher full retirement age, a new senior deduction, and a sharp rise in the taxable wage cap. These changes have completely changed the outlook of Social Security for future retirees.
Experts say that it is important to start planning early before the new rules take effect. Doing so will enable retirees to navigate the new system with ease.
1. Recheck Your Social Security Benefit Amount
The first recommended step for anyone planning to retire in 2026 is to review their updated benefit estimates. You can check your benefit amount through the Social Security Administration’s online portal. Doing so will allow you to see how your monthly payments will be calculated under the new system.
Even small changes and adjustments in the formula should not be ignored, as they have major financial consequences. Even a small change of 2% could see lifetime benefits reduce to $25,000 for someone receiving around $30,000.
“The money worth today will also determine whether one should save the money or that one should change the current spending habits before retirement,” said J.R. Faris, president and CEO of Accountalent.
Checking benefits will also help retirees determine if they should save more aggressively or spend more cautiously to achieve their retirement goals.
2. Prepare for New 2026 Tax Rules
The 2025 senior deduction, which aims to decrease taxes for retirees over 65 or older, will affect how Social Security benefits are taxed in 2026. The taxable wage cap, on the other hand, will rise to $183,600, impacting higher-income earners in their final working years.
“Individuals seeking to retire in 2026 will want to update their financial plan, which includes taking an inventory of assets, liabilities, sources of income and expenses,” said Ryan Monette, financial advisor at Savant Wealth Management.
3. Time Your IRA and 401(k) Withdrawals Carefully
As the rules change, you should also be careful with your withdrawals. Poorly timed distributions from IRAs or 401(k) plans can push you into higher tax brackets, especially in your first retirement year. Experts recommend mapping out a well-thought withdrawal plan in 2026 that aligns with your Social Security filing date and anticipated income.
4. Don’t Claim Benefits Too Early
One of the major Social Security changes in 2026 is the full retirement age. The full retirement age (FRA) for those born in 1960 will officially rise to 67. This means that filing at 66 will now lead to a reduction of benefits.
“The timing decision depends on your individual circumstances, but for many people, waiting until age 70 to claim benefits proves more financially advantageous,” said Nicole Asher, senior wealth management advisor with Greenleaf Trust.
5. Rebuild Your Budget Around the New Rules
Financial experts advise developing several versions of your retirement budget to determine how the new Social Security adjustments can impact your monthly income. One version should reflect your current benefit estimates while the other should take into account a 2.7% cost-of-living adjustment (COLA) and a full retirement age of 67.
Yehuda Tropper, CEO of Beca Life Settlements, also advises retirees to maintain a liquidated cash reserve that equals about six months of essential expenses. This cushion will help to ensure that the first cost-of-living adjustment (COLA) payment in January 2026 isn’t wiped out by possible higher Medicare Part B premiums.
It’s recommended that you have an emergency fund that will help you when you incur unexpected healthcare increases in the first year.
6. Set Up Direct Deposit Before You File
The Social Security Administration is ditching paper checks and shifting toward digital payments. To be in line with this change, future retirees are encouraged to log into the SSA accounts and ensure that their direct deposit information is accurate and up-to-date before filing in 2026.
Doing so as soon as possible will ensure that your benefits arrive without delay. Direct deposit will also ensure that your benefits are secure.