If you're like most retirees, you depend on your Social Security. If your benefit check is smaller than expected, that could be a problem.
Unfortunately, retirees are at risk of this occurring. In fact, there are four ways seniors could lose their benefits in 2026. Here's what they are.
1. Taxes
Taxes take a bite out of benefits for around 50% of retirees, according to the Senior Citizens League. They hit more seniors every year because thresholds at which benefits become taxable aren't indexed to inflation.
What's more, the White House promised to eliminate the tax on Social Security benefits and declared victory, stating, "Under the One Big Beautiful Bill, the vast majority of senior citizens -- 88% of all seniors who receive Social Security -- will pay NO TAX on their Social Security benefits."
That's not what actually happened. Tax rules remain unchanged, but a new deduction was introduced that lasts until 2028. You'll still owe taxes on Social Security now and in the future if provisional income (half of all Social Security, plus all taxable and some nontaxable income) exceeds:
- $25,000 as a single filer
- $32,000 as a married filer
The specifics of your income will determine whether you're taxed on up to 50% or up to 85% of your benefits.
2. Medicare premiums
Medicare Premiums are another reason you'll take a hit on your benefits. The Center for Medicare and Medicaid Services announced premiums for Part B will be $202.90 in 2026 for most people. That's up from $185 last year.
Medicare premiums usually come right out of Social Security checks. If you weren't expecting the increase, you'll be surprised to find less income than anticipated.
3. Loss of buying power
There's a hidden way you're losing benefits every year that most people don't even notice.
It's happening because the formula used to determine Social Security COLAs is faulty. It measures inflation experienced by urban wage earners and clerical workers who don't spend as much as seniors in categories where inflation is above average.
The Senior Citizens League estimates benefits have lost 20% of buying power since 2010. This is a hidden loss most seniors don't know about.
4. Working too much
Finally, if you haven't hit full retirement age (FRA) and work too much, you'll lose part of your benefits. Specifically, the Social Security Administration explains that you'll lose:
- $1 for every $2 above $24,480 if you won't reach FRA all year
- $1 for every $3 above $65,160 if you'll reach FRA at some time during the year
Whole checks can disappear if you work too much, which could come as a shock.
What can you do about losing benefits?
There's nothing you can do about benefits losing buying power. You must control what you can, which means working on your budget and making sure you're investing your retirement funds as wisely as possible so you have extra funds when Social Security falls short.
