Since the first retired-worker benefit check was mailed in January 1940, Social Security has been providing a financial foundation for those who may no longer be able to do so for themselves. Today, more than 70 million traditional beneficiaries (retired workers, workers with disabilities, and survivor beneficiaries) receive a monthly payout from America's leading social program.
However, Social Security isn't static. As multiple economic variables shift, so do the payouts, tax levels, and income thresholds associated with this program.
With the Social Security Administration (SSA) releasing its 2026 cost-of-living adjustment (COLA) Fact Sheet on Friday, Oct. 24, we now know the six ways Social Security will change forever in 2026.
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1. Social Security payouts will climb in historic fashion
Among the many changes announced on a near-annual basis, none is more anticipated by Social Security beneficiaries than the COLA reveal. Social Security's COLA is effectively the raise passed along to recipients to help them combat the effects of inflation (rising prices). This year's COLA announcement was delayed nine days due to the federal government shutdown.
On Friday, Oct. 24, the final puzzle piece needed to calculate the 2026 COLA was published in the U.S. Bureau of Labor Statistics' September inflation report. The SSA announced a 2.8% raise would be headed beneficiaries' way in the new year.
Based on estimates in the SSA's COLA Fact Sheet, the average retired worker will see their monthly check rise by $56 to $2,071 in 2026, while the typical worker with disabilities will receive $44 extra per month for an average payout of $1,630.
Though a 2.8% cost-of-living adjustment isn't groundbreaking, when compared to respective increases of 5.9%, 8.7%, and 3.2% from 2022 through 2024, it does mark the fifth consecutive year where beneficiaries are receiving a payout bump of at least 2.5%. This hasn't happened in 29 years (1988 through 1997).
However, most aged beneficiaries will see some or all of their 2026 COLA offset by stubbornly high inflation from key expenses, including shelter, medical care services, and a projected 11.5% increase in the Part B premium for traditional Medicare.
2. High earners will pay more into the Social Security program
Last week's update from the SSA also makes clear that the well-to-do will be opening their wallets a bit wider in the upcoming year.
Social Security's 12.4% payroll tax on earned income (wages and salary, but not investment income) accounted for more than 91% of the approximately $1.42 trillion in income collected by the program in 2024. This year, all wages and salary between $0.01 and $176,100 are subject to the payroll tax, with earnings above the tax cap (the $176,100 figure) exempted.
With the exception of years where deflation occurs and no COLA is passed along to beneficiaries, the earnings tax cap adjusts in lockstep with the National Average Wage Index on an annual basis. In 2026, this tax cap is increasing to $184,500. This means high-earning employees may owe up to $520.80 in added payroll tax next year, with well-to-do self-employed individuals owing up to $1,041.60 extra.
3. The maximum monthly payout at full retirement age is increasing
On the other end of the spectrum, the maximum monthly payout at full retirement age for lifetime high earners will be increasing notably in the upcoming year.
Just as the payroll taxation of earned income is capped, so is the amount of benefits a retired worker can receive each month, regardless of their average annual income during their lifetime. This year, the highest monthly payout at full retirement age is $4,018. In 2026, it'll rise by $134/month to $4,152.
To qualify for this highest-possible monthly benefit check, you'll need to meet three criteria:
- Wait until full retirement age to begin collecting your retired-worker benefit.
- Work a minimum of 35 years, since the SSA takes your 35 highest-earning, inflation-adjusted years into account when determining your monthly payout.
- Meet or surpass the maximum taxable earnings cap in all 35 years used in your monthly payout calculation by the SSA.
Only around 2% of beneficiaries qualify for the maximum monthly payout at full retirement age.
4. Early filer benefit-withholding thresholds are on the rise
The fourth way Social Security is changing forever in 2026 has to do with potential penalties associated with collecting benefits prior to reaching full retirement age ("early filers").
It's a pretty well-known fact that claiming retirement benefits before full retirement age will result in a permanent reduction to your monthly payout of up to 30%. But you might not have realized that the retirement earnings test allows the SSA to withhold some or all of your benefit, depending on how much you earn.
In 2025, early filers who won't reach their full retirement age can have $1 in Social Security benefits withheld for every $2 in earned income above $23,400 ($1,950/month). Next year, this threshold will rise by $90/month to $2,040/month, or $24,480 for the year. In other words, early filers can bring home more earned income without being penalized for it by the retirement earnings test.
The same goes for early filers who will hit their full retirement age in 2026. Early filers who reached their full retirement age in 2025 are allowed to earn up to $62,160 for the year ($5,180/month) before $1 in benefits is withheld for every $3 in earned income above this threshold. Early filers reaching full retirement age in 2026 can earn up to $65,160 for the year ($5,430/month) before withholding kicks in.
A quick note: Withheld benefits are returned in the form of a higher monthly payout once an individual reaches their full retirement age.
5. Substantial gainful activity limits for workers with disabilities are climbing, as well
Early filers aren't the only group who'll be able to earn a bit more in the new year without facing a potential loss or deferment of Social Security income.
Social Security's roughly 7.1 million workers with disabilities (as of August 2025) have line-in-the-sand substantial gainful activity levels that, if crossed, will cause their monthly disability income to stop.
This year, non-blind workers with disabilities were allowed to earn $1,620/month without having their benefits halted. Meanwhile, blind workers with long-term disabilities could generate up to $2,700/month before their disability benefits would cease.
Beginning in 2026, non-blind workers with disabilities can bring home up to $70 extra per month ($1,690/month) without benefits stopping, while the substantial gainful activity threshold for blind workers with disabilities will climb by $130/month to $2,830/month.
6. Qualifying for a Social Security benefit will become incrementally tougher
The final Social Security change for 2026 has to do with the generally low bar workers have to step over to eventually receive a Social Security benefit.
Most people will earn their Social Security benefit through work. A total of 40 lifetime work credits is needed to qualify for a retired-worker benefit, with a maximum of four credits earned each year.
These work credits are awarded based on earned income. For instance, it took $1,810 in earned income in 2025 to receive one work credit. If you earned $7,240 ($1,810 X 4) in the current year, you'll collect the maximum of four work credits.
Next year, you'll need $1,890 in wages and salary -- $80 more than in 2025 -- to qualify for one work credit. To collect four credits in 2026, you'll need $7,560 in earned income.
