The Social Security Administration recently announced that the upcoming cost-of-living adjustment (COLA) for 2026 will be 2.8%. With the average retiree benefit landing at around $2,008 per month, that will amount to a raise of roughly $56 per month.
With the new COLA comes a slew of other changes, such as a new maximum benefit amount. Next year will see a record-breaking max benefit of $5,251 per month, but there are some strict requirements to get there.
Here are the three factors influencing your benefit that you need to know.
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1. The length of your career
In general, you only need to work and pay Social Security taxes for 10 years to qualify for retirement benefits. However, your benefit amount is based on an average of your wages throughout the 35 years you earned the most. This figure is then run through a complex formula and adjusted for inflation, and the result is the amount you'll receive at your full retirement age.
If you qualify for benefits but haven't worked 35 full years, you'll have zeros added to your average to account for any time you were not working. This isn't necessarily a bad thing, but it will reduce your payment -- and disqualify you from the maximum benefit.
2. Your claiming age
The age you file for Social Security is perhaps the biggest factor impacting the size of your monthly payments. You can begin claiming as early as age 62, but for every month you wait up to age 70, you'll earn larger checks.
Those retiring in 2025 at age 62 can earn a maximum possible benefit of $2,910 per month in 2026. If you file at age 67, the maximum benefit next year will be $4,156 per month. To earn the highest possible payment of $5,251 per month, you'll need to wait until age 70 to begin claiming.
If you qualify for the maximum benefit amount, the difference between filing at 62 and 70 amounts to around $2,341 per month -- or more than $28,000 per year. It's wise to make your claiming decision carefully, as it will have an enormous impact on your monthly retirement income.
3. Your earnings history
The final factor to put you on track for the maximum benefit is your salary. To earn the largest benefit possible, you'll need to consistently reach the maximum taxable earnings limit. This is the highest income subject to Social Security taxes, and it changes from year to year to account for cost-of-living changes.
In 2026, the maximum taxable earnings limit will be $184,500 per year -- up from $176,100 per year in 2025. If you began your career 35 years ago in 1991, the earnings limit that year was $53,400.
If your salary is falling short of the earnings limit, that's OK. In reality, very few retirees will qualify for the maximum Social Security benefit, as it's not designed to be attainable for the average worker. However, there are still some simpler steps you can take to increase your benefit:
- Increase your income even slightly: You don't have to reach the maximum taxable earnings limit to see a boost in benefits. If you're able to increase your income even a little, it can still add up to a larger monthly payment.
- Delay claiming benefits: If you were planning on taking Social Security at 62, waiting just a year or two can increase your payments by hundreds of dollars per month.
- Extend your career: Working 35 full years will also increase your benefit amount. If you're on the cusp of the 35-year mark, consider holding out just a little longer to give your earnings average a bump.
Reaching the maximum benefit amount is incredibly challenging, but there are still ways to earn more from Social Security. Small steps can make a big difference, and knowing the factors that impact your benefit amount is the best place to start.
