3 Social Security Changes You Need to Know Before January 2026

Another year has come and gone, and Social Security retirees are on to 2026. It was certainly an eventful year for recipients, particularly in relation to the annual cost-of-living adjustment (COLA), which determines the annual increase in benefits and is heavily influenced by inflation data.

The outlook for inflation changed several times throughout the year, and the COLA even got delayed later than normal this year, due to the government shutdown. With just days remaining in the year, retirees should familiarize themselves with changes to Social Security for next year, as this can help inform their budgeting process. Here are three to know about.

1. Social Security benefits are rising

After a volatile year for inflation, the COLA came in at 2.8%, meaning benefits will, on average, rise by that amount. That's higher than the 2.5% COLA this year, but otherwise the smallest since 2022.

Retirees should understand that higher COLAs aren't necessarily a good thing. They're dependent on inflation data, so if the COLA is rising, the cost of living is going up as well. Annual studies from the non-partisan Senior Citizens League also suggest that COLAs have struggled to keep pace with inflation since 2010, resulting in a loss of purchasing power.

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That said, the average monthly check for Social Security retirees in November of this year was roughly $2,013, or $24,156 per year. The 2.8% bump would grow this amount to $2,069 per month, or $24,832 annually.

2. The full retirement age will increase for some for the last time

Another notable change is that the full retirement age (FRA) for those born before 1960 is also changing. The FRA is the age at which one is eligible to receive all the benefits they're entitled to. Retirees can claim benefits as early as age 62, but that's likely to result in a significant reduction to one's fully entitled benefits, potentially as much as 30%.

The FRA for anyone born in 1960 or after is age 67. However, people born between 1943 and 1959 reach their FRA at various times throughout their 66th year, although the FRA for this cohort has been gradually increasing since 2021. Next year will be the final time the FRA changes for this group; anyone who turns 66 in 2026 will have to wait until they are 67 to hit their FRA.

3. Workers could have to pay Social Security taxes on more of their income

The benefit base, which is the amount of a person's annual income subject to Social Security taxes, is also changing. Workers and employers are each assessed a 6.2% Social Security payroll tax annually, or a total of 12.4% for those who are self-employed. The benefit base this year was $176,100. Next year, it will rise to $184,500. The limit goes up each year based on changes to the national average wage index.

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