One thing you can always count on when it comes to Social Security is change. It's as unavoidable as rush-hour traffic in any major city. Some changes are closer to one-off moves (like changing the full retirement age), while others are consistent and expected.
We've reached the time of year when Social Security begins announcing important changes to the program for the upcoming year. Not every change is relevant to everyone, but here are three numbers that have recently changed that recipients should at least be aware of now.
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1. Recipients can expect higher monthly benefits in 2026
Inflation is a necessary part of economic expansion, but nobody likes the effects it has on their pocket -- especially when it exceeds their earnings. For Social Security recipients, inflation can be felt even more because their income is largely fixed.
To help with this problem, Social Security implements an annual cost-of-living adjustment (COLA). It's arguably the most important and anticipated change each year because it affects every Social Security recipient. In 2026, recipients can expect a 2.8% increase to their monthly benefit.
The amount of the annual COLA is determined by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) inflation data from the current year to the past year. The Social Security Administration (SSA) examines the average CPI-W for July, August, and September, compares it to the average from the previous year, and then sets the COLA at the percentage difference (rounded up to the nearest tenth of a percentage point).
The 2.8% COLA for 2026 is higher than the COLA for 2025 (2.5%), but still below the average COLA since it became an annual occurrence in 1975.
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2. You could pay less in Social Security taxes this year
Most Americans pay Social Security payroll taxes on their income; however, not all income is subject to this tax. Only income up to a certain amount, called the wage base limit, is eligible to be taxed. Starting in 2026, the new wage base limit is $184,500, up from the $176,100 wage base limit in 2025.
Since most Americans earned below last year's limit, they won't notice any change tax-wise. But for individuals who make between $176,100 and $184,500, this could mean owing more taxes. For example, if you earned $184,000 last year, $7,900 would be exempt from the Social Security payroll tax. In 2026, all $184,000 would be taxed.
Tax aside, the wage base limit is also important to track for individuals looking to receive the maximum monthly Social Security benefit. To receive the maximum benefit, you must do two things: Delay claiming benefits until 70 and earn above the wage base limit for the 35 years that the SSA will use to calculate your benefits.
So, if 2026 is one of the years that will be used, you'd need to earn above $184,500.
3. You can earn more while claiming benefits early
Plenty of people claim Social Security early and then continue to work and earn money. There's absolutely nothing wrong with that. However, one thing to be aware of is that earning above a certain amount while claiming benefits early could subject you to Social Security's retirement earnings test (RET).
If you won't reach your full retirement age in 2026, the earnings limit is $24,480 (up from $23,400 in 2025). Earning above that amount will reduce benefits by $1 for every $2 over that amount. If you hit your full retirement age in 2026, the limit is $65,160 (up from $62,160). Earning above that amount will reduce your benefits by $1 for every $3 over.
The good news is that the withheld benefits aren't permanently lost. Once you reach your full retirement age, Social Security recalculates your monthly benefit in a way that gradually adds back the withheld amount over your lifetime.
