From each month to the next, Social Security benefits serve as a lifeline of support for tens of millions of vulnerable individuals across the country. Relying on a fixed income to make ends meet can often become tough to navigate, and as such, any major changes made to the program can become a cause for concern to beneficiaries. Not all change is negative however, and some of the upcoming Social Security changes that are slated to take effect in 2026 actually mean more money for beneficiaries. Here is what you need to know.
2026 Cost of Living Adjustment
Inflation is a fickle constant in our daily lives, and its effects have far more severe consequences on those relying on a fixed income such as Social Security. In order to help benefit checks retain its buying power in the face of inflation from each year to the next, the Social Security Administration (SSA) implements a Cost of Living Adjustment (COLA) once a year.
The COLA is determined by measuring the third quarter CPI-W year over year, and if there is an increase, this will become the percentage by which all benefits will be increased in the upcoming year. On October 24th, the SSA officially announced the 2026 COLA at 2.8%. This means that starting in January 2026, all benefits issued by the SSA, including the Supplemental Security Income, will be increased by 2.8%.
A 2.8% boost to benefits will translate to around $56 more (relative to the average retiree benefit amount of $2,008). Unfortunately, around a third of this benefit boost will be eaten away before benefits even hit the recipients’ bank accounts. This is because the Medicare Part B premium, which is automatically deducted from Social Security benefits, is also projected to increase by 11.6% in 2026. This would add around $21.50 to the cost of the premium.
Increased retirement earnings limit
If you claim benefits before reaching your respective full retirement age (FRA) and are also continuing to work (i.e. earn an income), you will be subject to a retirement earnings test. If your earnings exceed the stipulated thresholds, a portion of your benefits will be withheld until you reach FRA.
In 2026, the amount of income you can earn before your benefits are withheld will be increasing. The new thresholds are as follows:
- If you will not reach FRA for the full year, the new earnings limit is $24,480 (increased from $23,400 in 2025). For every $2 you earn above $24,480, you will lose $1 of your Social Security benefit.
- If you will reach FRA within the year, the 2026 earnings limit is $65,160 (increased from $62,160 in 2025). For every $3 you earn above $65,160, you will lose $1 of your Social Security benefit.
Once you reach FRA, these benefit reductions phase out and the SSA will recalculate your benefit.
Higher maximum benefit
The maximum benefit paid by the SSA at FRA in 2025 currently totals to $4,018, while the maximum benefit for delayed retirements amounts to $5,108. Both of these figures will be increasing to $4,152, and $5,251 respectively once the 2.8% COLA boost takes effect next year.
In order to become eligible for the maximum $5,251 benefit check in 2026, all of the following requirements will need to be met by the claimant:
- Work for a minimum of 35 years.
- Earn an income that is equivalent to or higher than the wage cap for 35 years. The wage cap fluctuates from year to year relative to average wages and inflation. In 2025, the wage cap is $176,100, however, this will be increased to $184,500 in 2026.
- Delay your retirement until you are 70 years of age so as to earn delayed retirement credits. When you claim benefits at FRA, you receive 100% of the benefit you are entitled to. If, however, you delay claiming beyond your FRA, you will receive an additional 8% boost to your benefits for each year that you delay. The FRA is currently age 66-67, and as such, if you delay your claim until you are 70, you will become eligible for 124% of the benefit you would have received had you claimed at FRA.