Social Security 2026 Updates: The Social Security Administration has officially announced the key changes that will take effect in January 2026. These adjustments impact more than 72 million Americans who receive retirement, disability, or survivor benefits. Here are the most important updates you need to know.
2.8% Cost-of-Living Adjustment (COLA) Confirmed for 2026
For 2026, Social Security benefits will increase by 2.8%. This is slightly higher than the 2.5% COLA applied in 2025 but remains one of the smaller adjustments in recent years.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year. Although inflation has cooled significantly from its 2022 peak, rising costs in housing, medical care, and food continue to affect seniors on fixed incomes.
The 2.8% increase translates to an average boost of about $56 per month for retired workers. The exact amount each person receives depends on their current benefit level — higher earners who paid more into the system over the years will see larger dollar increases.
Average Monthly Benefits After the 2026 COLA
Starting January 2026, the estimated average monthly payments will be:
- Retired workers: $2,071 (up from $2,015)
- Retired couples (both receiving benefits): $3,374 (up from $3,287)
- Disabled workers: $1,605 (up from $1,563)
- Widow(er)s and surviving spouses: $1,959 (up from $1,908)
SSI recipients will see the federal payment standard rise to $967 for individuals and $1,450 for couples.
Maximum Taxable Earnings Cap Rises to $184,500
One of the biggest changes affects higher-income workers. In 2026, the Social Security payroll tax (6.2% for employees and employers each) will apply to the first $184,500 of earnings — an increase of $8,400 from the 2025 cap of $176,100.
This adjustment ensures the program continues collecting revenue from top earners as wages grow. Only about 6% of workers earn above the current cap, so the majority of Americans will not pay additional Social Security tax because of this change.
Earnings Test Limits for People Still Working
If you claim Social Security before reaching full retirement age (FRA), your benefits can be reduced if you earn above certain thresholds. These limits are adjusted annually.
In 2026:
- If you will be under FRA all year: You can earn up to $24,480 before benefits are reduced ($1 withheld for every $2 earned above the limit).
- In the year you reach FRA: The limit jumps to $65,160 (only counts earnings before the month you reach FRA), with $1 withheld for every $3 earned above the limit.
- Once you reach FRA: There is no earnings limit at all — you keep 100% of your benefit regardless of income.
These higher limits give working beneficiaries more flexibility without losing benefits.
How Medicare Part B Premiums Could Reduce Your Net Gain
While the 2.8% COLA adds money to most checks, rising Medicare costs may take much of it back. The standard Medicare Part B premium is projected to increase from $185 in 2025 to around $206.50 in 2026 — an 11.6% jump.
For the majority of beneficiaries who have Part B premiums deducted directly from their Social Security payment, the net monthly gain could shrink to $30–$40 or less after the premium hike. Some lower-income beneficiaries protected by the “hold harmless” provision may see little or no premium increase.
When Will You See the New Amounts?
Most Social Security beneficiaries will receive their first increased payment in January 2026. SSI payments reflecting the new amounts will be deposited on December 31, 2025.
You can view your exact 2026 benefit amount by logging into your my Social Security account at ssa.gov. The SSA began mailing COLA notices in early December 2025, and online statements became available in late November.
Long-Term Outlook for Social Security
The 2026 changes come against the backdrop of ongoing discussions about the program’s future solvency. According to the latest Trustees Report, the combined trust funds are projected to become depleted by 2035 unless Congress acts. Potential reforms under consideration include raising the full retirement age, modifying the benefit formula, or increasing revenue through higher payroll taxes or removing the wage cap entirely.
For now, the 2026 adjustments ensure benefits keep pace with inflation and that the program continues collecting adequate revenue from today’s workers.
Key Takeaways for 2026
- Benefits rise 2.8% starting January 2026
- Average retired worker check increases by approximately $56/month
- Wage base for Social Security tax rises to $184,500
- Earnings test limits increase, giving working beneficiaries more room
- Medicare Part B premium increase may offset much of the COLA for many
Stay informed by checking your personalized benefit statement on the SSA website, and consider how these changes fit into your overall retirement income plan.