2 Social Security Changes in 2026 That Will Affect Current Retirees the Most

If you are retired, there is a good chance you're getting at least some -- and potentially most -- of your household income from the Social Security Administration.

Social Security benefits are a critical source of funds for seniors because they don't run out while retirees are still alive, and they're earned by working and equal a percentage of your average earnings.

Since this money from Social Security is likely helping you make ends meet as a senior, you should be aware of the rules that affect how much of it you can collect -- and keep. To that end, it's important to be aware of two big rules that are changing in 2026 that will affect current retirees the most.

Here's what they are.

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1. Work limits are changing for those under full retirement age

The first big thing to know is that the rules for working while you collect Social Security will be different in 2026.

This change impacts only those who have a job, and who are collecting retirement benefits, but who have not yet reached their Full Retirement Age. FRA depends on the year when you were born. For anyone born in 1960 or later, it's going to be 67. That means if you are turning 66 in 2026 or beyond, these rules affect you.

The rules limit how much you are allowed to work before your monthly Social Security check is reduced because you have earned too much. Specifically, here is the change that's happening next year:

• You lose $1 in benefits for every $2 earned above $23,400 in 2025 or $24,480 in 2026. This applies if you won't hit your full retirement age during the whole year.
• You lose $1 in benefits for every $3 earned above $62,160 in 2025 or $65,160 in 2026. These rules apply to income you earn before reaching your full retirement age if you will hit FRA sometime during the year.

Essentially, this means that you get to work a little more before you see some or all of your Social Security checks disappearing.

This change is a good thing if you are hoping to double-dip and get a paycheck and collect Social Security at the same time. This is part of many people's retirement planning because many people have too little savings. If you don't have enough in your retirement plans to replace around 40% of your pre-retirement income to supplement Social Security, you may need to work to maintain your lifestyle.

However, when your Social Security benefits disappear due to earning too much, they aren't gone forever. They're recalculated at your FRA to account for any income you missed. This recalculation can leave you with a higher monthly benefit later. So, the higher work limit means you can keep more money at the time you're working, but there's less of a chance that a missed month will lead to a recalculation and a larger benefit later.

As you consider how to support yourself in your senior years and whether you'll have enough money in your 401(k)to supplement your benefits, make sure you're aware of these work rules.

2. A Cost of Living Adjustment means all retirees are getting more benefits

The next major change for current retirees in 2026 also brings both good news and bad news. The good news is that Social Security retirees are getting a raise next year. Benefits are increasing by 2.8%, which exceeds the 2.5% Social Security COLA for seniors in 2025. This means retirees will see more money in their checks.

The bad news is that this means inflation remains high, as benefits are based on year-over-year price increases. The Federal Reserve's target inflation rate is around 2.00%, and the COLA suggests prices are rising faster than that. Seniors who are currently receiving benefits should be aware of this raise and that it signals continued high inflation, so they can plan their financial affairs accordingly.

Knowing both what's happening with inflation and the work rules can help you make smart choices about how much you can earn to help you cope with rising costs of living.

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