These 2026 Social Security Changes Could Put More Money in Retirees' Pockets

There are millions of older Americans today who rely on Social Security for monthly income. And even if you manage to retire with a decent chunk of retirement savings, you might still depend pretty heavily on those benefits to make ends meet once you stop working.

Even though Social Security has been around for a long time, the program tends to undergo changes from year to year that could impact beneficiaries for the better. Here are two positive Social Security changes that are coming in 2026 that could result in more money for you.

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1. A 2.8% cost-of-living adjustment

Inflation has a tendency to drive living costs up over time. But there are many people who collect Social Security for decades. Without adjusting benefits for inflation, seniors would be guaranteed to lose buying power.

Thankfully, Social Security benefits are eligible for an automatic cost-of-living adjustment, or COLA, each year that's tied to inflation. In 2025, Social Security benefits rose 2.5%. But 2026's COLA is going to be a bit higher. It's coming in at 2.8%.

Now to be clear, a 2.8% COLA is by no means the largest Social Security raise to ever arrive. But historically speaking, it's not a bad bump. For context, there have been years when Social Security benefits got no COLA at all.

More importantly, a 2.8% COLA indicates that while inflation is still very much a problem, it's not nearly as rampant as it was on the heels of the pandemic. To put it another way, had 2026's Social Security COLA come in higher, it would've been at the expense of higher costs. So a 2.8% COLA is actually something to be reasonably happy with.

2. A higher earnings-test limit

There are benefits to holding down a job in retirement besides just the extra paycheck. Work can serve as a social outlet and give people a reason to get out of the house.

But the reality is that many people who choose to work in retirement do so because they need the extra money. And in 2026, seniors on Social Security get more flexibility to earn an income while collecting benefits.

If you work while receiving Social Security before reaching full retirement age, you're subject to an earnings-test limit. Exceeding that limit means having some of your Social Security withheld.

In 2026, Social Security's earnings-test limit is rising from $23,400 to $24,480 for people who will be under full retirement age the entire year. If you fall into that category, earnings beyond $24,480 will cause you to have $1 in Social Security withheld per $2 of income.

The earnings-test limit is higher if you'll be reaching full retirement age in 2026. It's going from $62,160 to $65,160. And beyond that point, you'll have $1 in Social Security withheld per $3 of income.

A higher earnings-test limit means you get to keep more Social Security if you work and earn a decent wage. So that's another positive change.

But remember, Social Security benefits that are withheld under the earnings test do not represent money you're giving up forever. Once you reach full retirement age, that money gets added back into your monthly checks.

Change can be a good thing sometimes

Sometimes, when people hear the word "change," they tend to brace for disappointment. In this case, these two changes Social Security is undergoing in the new year could improve a lot of people's finances.

It's important to read up on the various ways Social Security is changing in 2026, whether you're already collecting benefits or not. There may be some other hidden updates you need to know about, so it helps to be informed.

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