3 Social Security Changes Coming Faster Than You'd Think

If you're collecting Social Security, this money is probably pretty important to your monthly budget. That's why it's smart to pay attention to changes that affect your benefits. Some of those changes are going to happen in 2026.

Since the New Year is going to arrive before you know it as we near the end of the year and the busy holiday season, it's worth starting to get ready now before you're caught off guard by the shift in the rules.

Here are three changes to start getting ready for now that could affect your finances.

Image source: The Motley Fool.

1. Social Security recipients are getting a raise

One of the first big changes retirees will notice is that their checks are getting bigger in 2026.

That's because a Social Security cost-of-living adjustment (COLA) is happening next year. COLAs are intended to help benefits keep pace with inflation. They happen in most years when the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) shows that prices are increasing for goods and services.

The 2026 COLA is yet to be announced, but currently, experts are projecting around a 2.7% COLA. That's a bit above the 2.5% benefits increase paid to retirees in 2025. The larger payments will start with your first checks for the 2026 year.

2. Full retirement age is changing

Another big change has to do with when you can claim your full benefit. It's a change to the full retirement age (FRA). If you were born in 1959 and turned 66 this year, your FRA was 66 and 10 months. If you were born before that, your FRA was earlier. If you were born in 1960 or later, your FRA is 67.

This change means that if you are turning 66 in 2026 or later, you are going to have to wait a little longer than your older peers to claim your full benefits. If you claim Social Security ahead of your full retirement age, you will unfortunately shrink your monthly benefits for the rest of your life, thanks to early filing penalties.

You do have the option to delay your claim beyond FRA, and you will earn delayed retirement credits each month you wait until the age of 70. These credits boost benefits by 2/3 of 1% per month, or 8% annually, up until age 70. Delaying can pay off for many retirees, because the larger payments mean you can rely less on distributions from retirement plans and enjoy more lifetime guaranteed income.

3. Work rules are changing

The rules for how much you can work while collecting Social Security are also changing. These rules apply if you are trying to work while collecting benefits and you have not yet reached your full retirement age.

Once you have reached FRA, you can work as much as you want. Before that, though, if you earn too much, you end up temporarily forfeiting some of your Social Security checks. These losses aren't permanent, as benefits will be recalculated at full retirement age to adjust for missed income -- but they still affect you, as they could mean less money coming into your home.

In 2025, you can earn up to $23,400 before losing benefits if you will not reach FRA at all during the course of the year. Once you earn more than that, you lose $1 in benefits for every $2 in extra income earned. If you'll reach FRA at some time during the year but haven't yet, then you can earn up to $62,160 before losing $1 in benefits for every $3 in extra income earned.

The good news is that these earnings limits are going to increase in 2026, so you'll be able to earn more without benefits being affected. While the official numbers aren't released yet, the limits are expected to rise to $24,360 and $64,800. This change could benefit you if you're hoping to double-dip with retirement benefits and a paycheck, since you'll now be able to earn a little more before losing some of your Social Security.

These changes could have a big effect on your finances and are only a few months away, so it's time to start preparing for them before the New Year arrives.

The Motley Fool has a disclosure policy.