These 2 Social Security Changes in 2026 Could Deal Working Americans a Major Blow

It's natural to think of Social Security as a program that matters to retirees only. After all, they're the ones who get to collect benefits.

But you should be paying attention to Social Security happenings even if you're nowhere close to retirement age. That's because changes to the program could impact you -- for better or worse.

Image source: Getty Images.

Unfortunately, Social Security is in line for two specific changes in 2026 that could have a negative effect on working Americans. Here's what they are.

1. Social Security's wage cap is rising

Social Security gets most of its funding from payroll taxes. But there's a limit as to how much income Social Security taxes each year.

In 2025, Social Security's wage cap is $176,100. But in 2026, it's rising to $184,500. This means that higher earners will pay Social Security taxes on an additional $8,400 in wages.

At first, you may be thinking, "Boo hoo -- so the rich folks will have to pay more." But it's worth noting that not everyone earning $184,500 a year is wealthy. In parts of the country where a starter home costs $900,000, a salary of $184,500 doesn't actually go as far as you'd expect.

A bigger issue is perhaps the fact that people earning $184,500 in 2026 will owe the same amount of Social Security tax as people earning $2 million. That's just how the wage cap works. It's also why some lawmakers have proposed lifting or eliminating the wage cap.

One reason there hasn't been a rush to get rid of the wage cap is that Social Security pays a maximum monthly benefit that's tied to it. If the wage cap were to be eliminated, it would raise the question of how to reward higher earners who would then be paying even more into the program.

But it also won't be surprising to see changes to the wage cap in the coming years. That's because Social Security is facing a funding shortfall that could result in benefit cuts.

Lawmakers have some options for preventing those cuts, like pushing full retirement age back a few years for younger workers. But taxing more wages is another option that's on the table.

2. Social Security work credits will have a higher value

The way to earn Social Security benefits in retirement is to work and pay taxes on your wages. Granted, there is another path to retirement benefits that doesn't require a wage history -- spousal benefits. But otherwise, you need to earn a certain amount of money to receive work credits, and that amount changes from year to year.

In 2025, a single Social Security work credit is worth $1,810. In 2026, the value of a work credit is rising to $1,890. This means that if you work very part-time, you may not end up getting all of the work credits you want in the coming year.

Keep in mind that the maximum number of Social Security work credits you can qualify for in a single year is four. You need 40 in total to get retirement benefits, and you need to work in some capacity for a minimum of 10 years due to the annual limit.

Know what's happening with Social Security

The big Social Security change people are talking about for 2026 is the program's upcoming 2.8% cost-of-living adjustment. But these changes are important to know about, especially if they impact you directly.

This is why it pays to keep up with Social Security news. You never know when an upcoming change might apply to you, even if you're nowhere close to being old enough to get benefits.

The Motley Fool has a disclosure policy.