As we get ready to step into the new year, now is a good time to take a fresh look at what’s changing in Social Security for 2026. Several updates are set to take effect soon, and staying informed can help you plan with confidence. Below, we highlight some important changes you should know about. For a deeper dive, you can also visit the Social Security Administration’s official fact sheet outlining all the updates here.
Cost of Living Adjustment (COLA):
Here’s some good news – In 2026, Social Security beneficiaries will receive a 2.8% COLA. That’s higher than 2025, when recipients saw a 2.5% increase. On average, Social Security retirement benefits will increase by about $56 per month starting in January.
Maximum Social Security Benefits:
Workers who reach full retirement age will receive a maximum benefit of $4,152 per month, up from $4,018 a month in 2025. (Full retirement age varies on the year you were born, but is 67 for anyone born after 1959).
Taxable Earnings Cap Raised:
The maximum taxable earnings on Social Security (OASDI only) has increased again this year. It has been raised from $176,100 in 2025, to $184,500. (Note: there is no limit on taxable earnings for Medicare).
Exempt Retirement Earnings:
It can be quite challenging to live on Social Security alone and many older Americans continue to work while retired. This can come with penalties if you are under full retirement age.
- If you are already at full retirement age and collecting Social Security, there is no limit on earnings.
- If you are under full retirement age and collecting Social Security, you may only earn up to $24,480 a year (up from $23,400 a year in 2025) before being penalized.
- If you are reaching full retirement age in 2026, you may earn up to $65,160 in 2026.
Note about Medicare:
Be aware that Medicare Part B premiums are increasing to $202.90 a month in 2026 for singles earning $109,000 or less, and couples earning $218,000 or less, and go up from there. Most Medicare enrollees typically have the premium deducted from their Social Security payments, which will partially offset the Social Security COLA.
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