3 Social Security Changes Retirees Need to Know About in 2026

We're only weeks away from the beginning of another year. Each new year always ushers in changes to Social Security – and 2026 won't be an exception.

What should retirees look for beginning in January? Here are three Social Security changes you need to know about in 2026.

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1. A 2.8% COLA

Every Social Security beneficiary will receive a "raise" next year. In October, the Social Security Administration (SSA) announced an annual cost-of-living adjustment (COLA) of 2.8%. This increase is slightly higher than the 2.5% adjustment applied in 2025.

Retirees shouldn't get too excited, though. The 2026 COLA will be below the average increase received over the last 10 years. More importantly, it probably won't be enough to fully offset the higher costs of goods and services incurred by seniors.

The problem stems from how the COLA is calculated. It uses an inflation metric known as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). One criticism of the CPI-W is that it doesn't give enough weight to expenses that affect seniors more heavily, including healthcare.

2. Higher maximum benefit

The maximum Social Security benefit (the highest amount any Social Security beneficiary can receive) will also increase in 2026. In 2025, the maximum monthly benefit for a worker retiring at full retirement age was $4,018. This amount will increase to $4,152 per month in 2026.

If you crunch the numbers, you'll find that the maximum benefit increase for next year is greater than the 2.8% COLA. That's because the maximum Social Security benefit is based on earnings that are subject to the FICA taxes that fund Social Security. In 2025, the maximum taxable earnings amount is $176,100. This maximum will increase to $184,500 in 2026.

3. New earnings test thresholds

Not every person who claims Social Security retirement benefits fully retires. Some individuals collect these benefits while continuing to work. The main downside to taking this path is that SSA will "claw back" benefits if earnings exceed a specific threshold. This is called the Social Security earnings test.

In 2025, SSA will withhold $1 of benefits for every $2 in earnings above $23,500 for anyone collecting retirement benefits before their full retirement age. During the year a person reaches the full retirement age, SSA withholds $1 of benefits for every $3 in earnings above $62,160.

These thresholds will be higher in 2026. SSA will withhold $1 of benefits for every $2 in earnings above $24,480 for individuals receiving retirement benefits before their full retirement age. The agency will withhold $1 of benefits for every $3 in earnings above $65,160 during the year a person reaches the full retirement age.

The good news is that no benefits are withheld once a person reaches the full retirement age. The even better news is that SSA will also adjust benefits to pay back any previous withholdings.

Another change that will impact retirees

While these are the major Social Security changes coming next year that will impact retirees, there's also another change to know about. The standard Medicare Part B premium in 2026 will be $202.90, reflecting a 9.7% year-over-year increase.

This higher premium will reduce the amount of Social Security payments that many retirees receive next year because Part B premiums are deducted from Social Security benefits. Additionally, the annual deductible for Medicare Part B will increase by 10.1% year-over-year in 2026 to $283.

Around 8% of Part B beneficiaries pay higher monthly premiums than the standard amount due to their earnings. However, these greater premiums only apply to beneficiaries who file individual tax returns with a modified adjusted gross income (MAGI) of over $109,000 or to those who file joint tax returns with a MAGI of over $218,000.

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