Social Security is always a big topic among retirees and those getting close to retirement. So what changes should you be aware of for 2026? Here are the seven most important new things to know about this key federal benefits program.
Top of mind each year for retirees is the annual cost-of-living adjustment. Yes, there’s a substantial COLA increase this year: 2.8%. Last year’s increase was 2.5%. The current rate of inflation is 2.7%, but the vast majority of senior citizens said in an AARP survey that a 3% COLA wouldn’t be enough to cover their expenses.
For the average retiree, the 2.8% increase will mean an additional $56 monthly, according to the Social Security Administration (SSA). That brings the average monthly check to $2,071, up from $2,015 in 2025.
For more seniors, the SSA automatically deducts the Medicare Part B premium from Social Security benefits. This year’s premium is increasing 9.7%, from $185 to $202.90 per month. That makes a big dent in the average payment.
The full retirement age (FRA) is an important number when making Social Security decisions. When you hit FRA, you can claim your full benefits. If you claim earlier, your benefits are reduced. In November 2026, the FRA becomes 67 for anyone born in 1960 or later. That’s up from the previous FRA of 66 years and 10 months.
For now and the foreseeable future, the FRA will stay at 67 years because this was the maximum Congress agreed to during 1983 reforms. Many experts think the FRA should continue to rise, as a matter of fiscal responsibility and rising life spans. But right now, there’s no serious effort in Washington to reform Social Security.
For pre-retirees, there are Social Security taxes to be paid (to fund the entire program). The rate (12.4% for most workers) isn’t changing in 2026, but there is an adjustment in the amount of your income subject to SSA tax. Last year, earnings above $176,100 weren’t taxed for Social Security. This year, the threshold increases to $184,500.
Many retirees grimace when they have to pay taxes on their Social Security benefits. But there’s a new tax break in 2026 for some people 65 and up. Those who qualify can reduce their taxable income by up to $6,000. The deduction phases out if your modified adjusted gross income is above $75,000 (or $150,000 for couples filing jointly.
You can still work when receiving Social Security, but there are income limits. After a certain point, your SSA benefits will be reduced. Last year, the SSA allowed recipients to make up to $23,400 per year before reducing benefits. $1 is withheld for every $2 earned above that limit. In 2026, the limit increases to $24,480 ($2,040 per month). In the year that you reach full retirement age, you only lose $1 for every $3 earned above the limit. And once you reach FRA, you can make as much as you want without losing any of your Social Security.
To qualify for Social Security, you must earn 40 credits over your lifetime as recorded by the SSA. You can earn up to four credits each year that you work. It’s relatively easy to earn those four credits but you must earn more in 2026 to qualify. Under the new requirements, you earn your four credits when your income for the year reaches $7,560.
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