Keeping tabs on Social Security probably isn't as fun as keeping tabs on your favorite celebrity or sports team. But it's an important thing to do, since the program has a tendency to change from one year to the next. And 2026 is no exception.
In the coming year, Social Security is undergoing a number of changes. But while two are certainly positive ones, there are two other changes in the works that may not sit well with some people. Here's an overview of the good changes as well as the not so good.
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1. A 2.8% cost-of-living adjustment (good change)
Social Security benefits are eligible for a cost-of-living adjustment, or COLA, every year based on inflation. Because inflation rose modestly in 2025, Social Security is getting a 2.8% COLA in 2026.
It can be argued that this is a positive change for a couple of reasons. First, a 2.8% COLA, though certainly not record-breaking, is far from the stingiest COLA recipients have ever gotten. In fact, there have been several 0% COLA years in Social Security's somewhat recent history.
Another reason a 2.8% COLA is pretty good news is that it's indicative of moderate inflation. Larger COLAs are a sign that inflation is soaring, and that's bad for seniors' wallets.
2. A higher earnings-test limit (good change)
Social Security recipients who wish to work are allowed to earn money from a job. Once you reach full retirement age, you're exempt from Social Security's earnings test.
But since seniors can claim benefits as early as age 62, you might end up in a situation where you're working before full retirement and are therefore subject to the earnings test. Exceeding its limits means having some Social Security withheld, though the money is repaid to you later.
In 2026, the earnings-test limits are rising as follows:
- For workers under full retirement age, they're increasing from $23,400 to $24,480. Beyond that, $1 in Social Security is withheld per $2 of earnings.
- For workers reaching full retirement age in 2026, they're increasing from $62,160 to $65,160. Beyond that, $1 in Social Security is withheld per $3 of earnings.
All told, this means that seniors can earn more money without risking having Social Security withheld.
3. A higher wage cap (not-so-good change)
Social Security sets a wage cap each limit that limits how much income is taxed to fund the program. In 2026, the wage cap is rising from $176,100 to $184,500.
The wage cap tends to rise in line with inflation just as benefits do. And while Social Security taxes are a crucial part of ensuring that the program can continue to exist, workers who have to pay more will no doubt see this change as a negative one.
It's also worth noting that many people whose earn higher incomes pay very high living costs to get access to those salaries. So it's not a given that an increased wage cap will be a non-event for those impacted by it.
4. A higher work credit value (not-so-good change)
To become eligible for Social Security benefits in retirement, you need to pay into the system. You do so by earning wages and paying taxes on them. In your lifetime, you must accumulate 40 work credits to receive retirement benefits, and you're limited to a maximum of four credits per year.
In 2026, the value of a single work credit is rising from $1,810 to $1,890. This means that people with very part-time wages may not get their four credits. Or, it means that if you work very part-time and want your four credits, you may need to increase your hours.
Some of the changes happening to Social Security in 2026 are more positive than others. But even the ones that aren't so great serve their purpose. It's important to keep tabs on Social Security changes no matter what stage of life you're in so you can prepare for them accordingly.
