Big Social Security changes are coming in 2026—here’s what to know now
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If Social Security plays a central role in your retirement plans—or already helps you make ends meet—you’ll want to keep a close eye on the upcoming changes set to roll out in 2026.
From a later full retirement age to smaller-than-hoped cost-of-living increases, several adjustments may affect how much you receive, when you receive it, and how long those benefits can be expected to last.
Some of the updates reflect long-standing phase-ins, while others are tied to rising inflation or concerns about the program’s solvency.
While most changes are incremental, one in particular has many experts worried about deeper financial impacts in the years ahead.
Here’s a breakdown of what’s happening and how it may affect your future benefits.
If you were born in 1960 or later, your full retirement age (FRA) will officially be 67 starting in 2026.
This marks the final stage in the FRA increase first enacted by Congress in 1983.
Those born in 1959 will still qualify at age 66 and 10 months.
Why it matters: Claiming Social Security before your FRA results in a permanent reduction in benefits—up to 30% if you start at age 62. On the other hand, delaying until age 70 can boost your monthly check through delayed retirement credits.
The 2026 cost-of-living adjustment (COLA) is projected to be 2.7%.
That’s slightly higher than 2025’s 2.5%, but still low compared to recent inflation surges.
What that means: The average monthly benefit could rise by about $54, or $650 over the year. While every bit helps, the increase may not be enough to keep up with ongoing hikes in grocery, housing, or healthcare costs.
In 2026, higher earners will pay Social Security taxes on more of their income, thanks to an increase in the taxable earnings cap.
This cap limits how much income is subject to the 6.2% Social Security payroll tax.
What to expect: If you earn above the current cap, your tax bill could go up by as much as $465 annually. However, paying taxes on higher income could also result in a slightly larger future benefit.
If you’re working while collecting Social Security before reaching your FRA, part of your benefit may be withheld if your income exceeds a certain threshold.
In 2026, that earnings limit is estimated to rise to $64,800.
Here’s how it works: For every $3 earned above the limit, $1 in benefits will be withheld. Once you reach FRA, withholding stops, and your benefit is recalculated to account for the amount withheld.
To qualify for Social Security, you need 40 credits, earned through work.
In 2025, earning $1,810 in wages qualifies you for one Social Security work credit—up from $1,640 in 2023.
The amount for 2026 will be set later, but it’s likely to increase slightly when announced.
Why this matters: Those working part-time, freelancers, or anyone with an irregular work history will need to track earnings closely to ensure they meet the minimum required income to earn four credits annually.
Perhaps the most serious issue looming is the potential depletion of the Social Security trust fund.
While the trust fund isn't expected to be fully depleted until 2033, automatic benefit reductions could come sooner if lawmakers don’t act—possibly beginning discussions or partial changes by 2026.
What’s at stake: Experts estimate cuts of up to 13% may be needed, translating to hundreds of dollars lost per month for the average retiree. A 23% cut—another scenario being considered—would require the average person to save an additional $150,000 to offset the reduction over retirement.
To protect your future retirement income, consider taking proactive steps:
As 2026 approaches, staying informed about Social Security changes is one of the best ways to protect your financial future.
Whether you’re already retired or planning ahead, understanding these updates can help you make smarter decisions for the years to come.
Read next: Do you really have your own Social Security account? Here's what most people get wrong
How are you feeling about these changes? If you’ve started making adjustments or have strategies to share, we’d love to hear your thoughts. The GrayVine community is a great place to trade tips and stay up to date on the issues that matter most in retirement.
From a later full retirement age to smaller-than-hoped cost-of-living increases, several adjustments may affect how much you receive, when you receive it, and how long those benefits can be expected to last.
Some of the updates reflect long-standing phase-ins, while others are tied to rising inflation or concerns about the program’s solvency.
While most changes are incremental, one in particular has many experts worried about deeper financial impacts in the years ahead.
Here’s a breakdown of what’s happening and how it may affect your future benefits.
Changes to Social Security in 2026 could affect how and when you claim your benefits. Image Source: YouTube / CBS Mornings.
Full retirement age will rise to 67 for more Americans
If you were born in 1960 or later, your full retirement age (FRA) will officially be 67 starting in 2026.
This marks the final stage in the FRA increase first enacted by Congress in 1983.
Those born in 1959 will still qualify at age 66 and 10 months.
Why it matters: Claiming Social Security before your FRA results in a permanent reduction in benefits—up to 30% if you start at age 62. On the other hand, delaying until age 70 can boost your monthly check through delayed retirement credits.
Also read: Will your benefits keep up? What to know about the 2026 COLA
A modest COLA will give a small boost to monthly checks
The 2026 cost-of-living adjustment (COLA) is projected to be 2.7%.
That’s slightly higher than 2025’s 2.5%, but still low compared to recent inflation surges.
What that means: The average monthly benefit could rise by about $54, or $650 over the year. While every bit helps, the increase may not be enough to keep up with ongoing hikes in grocery, housing, or healthcare costs.
Also read: Social Security shifting benefits away from some retirees—find out who’s at risk now
The wage cap for payroll taxes is increasing
In 2026, higher earners will pay Social Security taxes on more of their income, thanks to an increase in the taxable earnings cap.
This cap limits how much income is subject to the 6.2% Social Security payroll tax.
What to expect: If you earn above the current cap, your tax bill could go up by as much as $465 annually. However, paying taxes on higher income could also result in a slightly larger future benefit.
More flexibility for working beneficiaries
If you’re working while collecting Social Security before reaching your FRA, part of your benefit may be withheld if your income exceeds a certain threshold.
In 2026, that earnings limit is estimated to rise to $64,800.
Here’s how it works: For every $3 earned above the limit, $1 in benefits will be withheld. Once you reach FRA, withholding stops, and your benefit is recalculated to account for the amount withheld.
Also read: Protect your retirement: Discover 5 major changes to Social Security coming in 2025!
It’ll be tougher to earn credits toward eligibility
To qualify for Social Security, you need 40 credits, earned through work.
In 2025, earning $1,810 in wages qualifies you for one Social Security work credit—up from $1,640 in 2023.
The amount for 2026 will be set later, but it’s likely to increase slightly when announced.
Why this matters: Those working part-time, freelancers, or anyone with an irregular work history will need to track earnings closely to ensure they meet the minimum required income to earn four credits annually.
Also read: Lawmakers push to safeguard Social Security as funding concerns grow
The trust fund may face a tipping point
Perhaps the most serious issue looming is the potential depletion of the Social Security trust fund.
While the trust fund isn't expected to be fully depleted until 2033, automatic benefit reductions could come sooner if lawmakers don’t act—possibly beginning discussions or partial changes by 2026.
What’s at stake: Experts estimate cuts of up to 13% may be needed, translating to hundreds of dollars lost per month for the average retiree. A 23% cut—another scenario being considered—would require the average person to save an additional $150,000 to offset the reduction over retirement.
Also read: A key Social Security milestone is coming this November—here’s what to know
What you can do now to prepare
To protect your future retirement income, consider taking proactive steps:
- Max out retirement contributions: Contribute to your 401(k) or IRA, especially if employer matching is available.
- Create alternate income streams: Rental income, part-time work, or smart investments can help cushion future changes.
- Delay claiming benefits if possible: The longer you wait (up to age 70), the higher your monthly benefit.
- Stay informed: Rules around Social Security change often. Bookmark reliable sources and check back regularly.
As 2026 approaches, staying informed about Social Security changes is one of the best ways to protect your financial future.
Whether you’re already retired or planning ahead, understanding these updates can help you make smarter decisions for the years to come.
Read next: Do you really have your own Social Security account? Here's what most people get wrong
How are you feeling about these changes? If you’ve started making adjustments or have strategies to share, we’d love to hear your thoughts. The GrayVine community is a great place to trade tips and stay up to date on the issues that matter most in retirement.
