5 Changes Coming to Social Security in 2026 (or Sooner) That May Surprise Retirees

Key Points

• Social Security has built in annual changes and the president can make adjustments via executive order.

• Two big changes could happen before the end of the year.

• Several factors, both positive and negative, will impact the size of your benefit next year.

• The $23,760 Social Security bonus most retirees completely overlook ›

Few government programs impact as many people as Social Security. Over 70 million Americans received a Social Security payment in July, and that number continues to climb every month.

While Social Security is desperately in need of some major changes, the program undergoes some minor changes all the time. Some of those are built into the current law, and the president has the power to make some adjustments through executive orders -- a power President Donald Trump has used extensively in his first seven months back in office.

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Here are five upcoming changes to Social Security that may surprise retirees.

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1. No more paper checks

President Trump signed an executive order in March ending the issuance of paper checks by the federal government. The deadline for compliance is Sept. 30, which means this will be the last month you can receive a paper check for your Social Security payment.

Starting in October, you'll need to have a direct deposit set up with your bank account or use a Direct Express card. The latter is a prepaid debit card for those without a bank account where the federal government can deposit benefits.

While most beneficiaries already receive their monthly payments electronically, there are still hundreds of thousands of paper check recipients. If you're one of them, be sure to update your information with the Social Security office or online at my Social Security before the end of the month.

2. Your payments could be garnished

The Department of Education paused federal student loan repayments in 2020 under the first Trump administration. That included a pause on collections of defaulted loans. The government finally resumed collections in May, which included garnishing pay. However, the government quickly came out and said it's placing a temporary pause on garnishing Social Security payments.

But temporary is a key word. "Please be aware that the Department of Education is delaying offsets of these monthly benefits for a couple of months and plans to resume sometime this summer," the DOE said in June.

We're now in September, so those garnishments are likely to resume soon. Social Security recipients in default can expect the Department of Education to take 15% of their benefits off the top of their monthly payment.

3. Some workers will pay more in Social Security taxes

The main funding source of Social Security comes from payroll taxes on working Americans. For most workers, they pay 6.2% of their earnings to Social Security with their employer matching their contribution. But high earners will only pay Social Security taxes on a portion of their earnings.

The Social Security Administration increases the amount of taxable earnings every year to account for wage inflation. For 2025, the maximum taxable earnings is $176,100 -- that's up from $168,600 in 2024. That number will continue to climb higher in 2026, which means more revenue collection for Social Security, as some workers pay more in taxes.

4. Benefits will receive an inflation adjustment

Over two-thirds of respondents in a recent Nationwide Financial survey of American adults did not know Social Security is protected against inflation. In fact, benefits receive a cost-of-living adjustment (COLA) every year based on a standard measure of inflation.

That said, some recipients may feel like their benefits are struggling to keep up with inflation. That may be due to a discrepancy in the typical spending categories for retirees and those weighted by the Consumer Price Index used for calculating the COLA.

Social Security recipients saw a 2.5% bump in their monthly payments this year. Analysts expect that number to climb to 2.7% this year based on the data collected so far, but we won't know the exact number until mid-October.

5. Medicare will likely take a bigger bite out of your benefits

If you're enrolled in Medicare while receiving Social Security benefits, the government will automatically deduct your Part B premiums from your monthly payment. With rising medical costs and higher utilization rates, Medicare officials expect to raise premiums quite a bit in 2026.

While we won't have the exact number until later this fall, the Medicare Board of Trustees estimates next year's standard Part B premium will be $206.20 per month, up from $185 this year. That's an 11.5% increase.

For those keeping track, that percentage increase far exceeds the expected COLA Social Security beneficiaries will receive. For beneficiaries with small payments, the program includes a "hold harmless" policy, which prevents the increase in Medicare premiums from reducing your monthly payment. However, the majority of beneficiaries will feel the pinch of rising medical costs.

While you might notice some changes to your Social Security benefits over the next few months, it's important to understand what's going on under the hood, so you can be sure you're getting the benefits you deserve.

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