A new year always brings changes. 2026 will be no exception, including when it comes to Social Security. There are four Social Security changes that retirees especially need to know about this year.
1. A 2.8% COLA
Most retirees are probably already aware that they're receiving a 2.8% cost-of-living adjustment (COLA) in 2026. The average monthly Social Security retirement benefit increased from $2,015 to $2,071.
Don't get too excited about those higher benefits, though. They're intended to offset the impact of inflation. However, the inflation metric used to calculate Social Security COLAs – the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) – is widely viewed as flawed. In particular, the CPI-W doesn't give healthcare costs enough weight, which makes up a higher percentage of budgets for retirees than for younger Americans.
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2. A fixed full retirement age
Another significant Social Security change won't impact anyone who has already retired. As of 2026, the fixed full retirement age for all Americans is 67.
The full retirement age has been gradually increasing from 65 since the enactment of the Social Security Amendments of 1983. This slow transition is now over. Unless Congress changes the full retirement age again, 67 will be the threshold for everyone.
3. Higher earnings limits
Just because individuals receive Social Security retirement benefits doesn't mean they're fully retired. Many people continue to work, either because they enjoy it or because they need to make extra money to cover their expenses.
Anyone who receives Social Security retirement benefits before their full retirement age and continues to work needs to know about a significant change that took effect in 2026. The Social Security Administration (SSA) will withhold $1 of benefits for every $2 earned above $24,480. This limit reflects an increase from $23,400 in 2025.
The rules change during the year a person reaches their full retirement age, though. SSA will withhold $1 for every $3 earned above $65,160 in 2026. Last year, the earnings limit was $62,160.
What about working after you reach your full retirement age? The good news is that no benefits will be withheld regardless of how much you earn.
4. Higher maximum taxable earnings
There's also another Social Security change that could impact some individuals who claim retirement benefits but continue to work. The maximum earnings subject to the Social Security portion of the FICA tax will increase to $184,500 in 2026 from $176,100 in 2025.
Will you have to pay FICA taxes even after you reach your full retirement age? Yep. Uncle Sam will still want your money.
Two related changes to know about
Two other changes in 2026 don't directly impact Social Security but are related. Both will affect millions of retirees.
The first change is a hefty increase to Medicare Part B premiums. The standard monthly premium for Medicare Part B will jump 9.7% year over year to $202.90 from $185 in 2025.
Remember the reference to the CPI-W not reflecting the healthcare cost inflation seniors experience? This significant Medicare Part B premium increase is a case in point. And since Part B premiums are withheld from monthly Social Security benefit payments, the actual increase that retirees receive from the 2026 COLA will be much lower than the expected 2.8%.
The other change this year relates to the additional federal tax deduction available to eligible individuals age 65 and older. This extra deduction, which was included in the "One, Big Beautiful Bill," is often referred to as a "senior bonus." It should reduce the federal income taxes for many retirees.
However, there are two catches with this "senior bonus." For one thing, not everyone will qualify for the full deduction. Eligibility depends on your modified adjusted gross income (MAGI). Also, it's temporary. The additional tax deduction goes away after 2028.
