7 Major Social Security Changes Arriving In Less Than A Month

Significant updates to Social Security are coming in just a few weeks, affecting retirees, future claimants, and anyone planning their financial future.

From a new 2.8% COLA increase to higher earning limits, these adjustments may influence when you claim benefits, how much you receive, and how much becomes taxable.

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Understanding these changes now can help you fine-tune your retirement strategy before January arrives.

1. Final Increase To The Full Retirement Age

The full retirement age (FRA) reaches its final scheduled rise this year.

• Anyone born in 1960 or later now has an FRA of 67.
• This marks the completion of the decades-long shift from age 65 to 67.

While the change seems small, the impact is substantial. Filing early at age 62 results in a permanent reduction of about 30% in benefits. Waiting until your FRA—or even delaying to age 70—can significantly increase your lifetime payout.

2. COLA Set At 2.8% For 2026

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The 2026 cost-of-living adjustment (COLA) is officially 2.8%.

• The average retired worker benefit will increase from $2,015 to about $2,071, a gain of roughly $56 per month before deductions.

Your personal benefit may differ depending on your work history, filing age, and Medicare or tax deductions.
Check your “my Social Security” account to view your detailed COLA notice, which outlines your gross and net benefit amounts.

3. Higher Retirement Earnings Test Limits

Retirees who claim benefits early but continue working must follow updated earnings test rules.

• Before the year you reach FRA, you can earn up to $24,480. Earn more and Social Security will withhold $1 in benefits for every $2 you make.
• In the year you reach FRA, the threshold increases to $65,160, with a withholding rate of $1 for every $3 earned above that level.

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Once you reach your FRA month, the earnings test ends, and the SSA recalculates your benefit to credit the months previously withheld.

4. Wage Base Limit Rises For 2026

The Social Security taxable wage base climbs to $184,500 in 2026.

• Earnings up to this amount are subject to OASDI taxes.
• Income above this limit is not taxed for Social Security and does not count toward your earnings record.

The tax rate remains unchanged:

• 6.2% for employees
• 12.4% for the self-employed

At the new limit, a worker can pay up to $11,439 annually toward Social Security.

5. Maximum Social Security Benefit Increases

In 2026, the highest possible benefit rises again:

• $4,152/month for retirees claiming at FRA
• $2,906/month for those filing at 62
• $5,251/month for those delaying to 70 and earning delayed retirement credits

However, only a small portion of retirees receive benefits this high. Achieving the maximum requires consistently earning at or above the taxable wage base for most of your 35-year earnings record.

6. Higher Earnings Required For Work Credits

To earn a work credit in 2026, you must make $1,890 in covered earnings—up from $1,810 in 2025.

• You can still earn only four credits per year.

This matters most if you’re nearing retirement but don’t yet have the 40 credits required to qualify for Social Security benefits. Review your earnings to ensure you can obtain the remaining credits in time.

7. Disability Beneficiaries Can Earn More

Individuals receiving disability benefits will see higher earning thresholds next year under the Substantial Gainful Activity (SGA) rules:

• $1,690/month for non-blind SSDI recipients
• $2,830/month for blind recipients

The Trial Work Period (TWP) amount also rises to $1,210/month, allowing SSDI beneficiaries to test returning to work without immediately losing disability benefits.

With less than a month left before these seven major Social Security changes take effect, now is the ideal time to review your retirement plan.

Shifts in COLA, earnings limits, work credit requirements, and maximum benefits may influence both your short-term income and long-term financial stability.

Visit your “my Social Security” account to confirm your updated benefit amount, review Medicare deductions, and understand your net payment so you can avoid costly mistakes in the new year.

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