Retirees and those close to claiming benefits are watching closely for changes to Social Security 2026.
While benefits themselves will continue, there are several important updates next year—from cost-of-living increases to retirement age rules, tax thresholds, and new federal law impacts.
What is the projected COLA increase for 2026?
One of the biggest changes to Social Security 2026 revolves around the Cost-of-Living Adjustment (COLA).
Early forecasts point to a 2.7 % COLA for 2026, up slightly from 2.5 % in 2025.
That level of increase would boost the average retired worker’s monthly benefit by about $54.
However, the official announcement of the 2026 COLA is subject to timing and data release.
A temporary government shutdown in 2025 delayed the release of inflation data needed to finalize the COLA.
Payments reflecting the new COLA are expected to take effect starting January 2026.
Will full retirement age change in 2026?
Yes. Among the changes to Social Security 2026, the Full Retirement Age (FRA) will hit 67 years for individuals born in 1960 or later.
That increment completes a decades-long schedule of raising the FRA from 65 to 67.
If you delay claiming benefits beyond your FRA, you still earn delayed retirement credits (which increase monthly benefits), but the base age for “full” benefit shifts upward.
How will taxation and earnings tests change?
Some of the changes to Social Security 2026 involve how working while receiving benefits interacts with Social Security rules:
- The earnings test limits (which reduce benefits if you earn above certain thresholds before reaching FRA) will be adjusted upward to reflect inflation.
- High earners may also see increased tax exposure as the Social Security taxable wage base (the maximum earnings subject to Social Security tax) is projected to rise.
Because of those adjustments, retirees who continue working should review how much additional earnings may reduce benefits or raise their tax liability.
What federal law changes will affect 2026 benefits?
A major legislative change was passed recently: the Social Security Fairness Act, signed January 2025. This law repeals the Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) for many public sector retirees.
- The GPO reduction that penalized survivors or spouses receiving both a public pension and Social Security is removed for claims after December 2023.
- The WEP, which reduced Social Security benefits for those with non-covered government pensions, is also repealed prospectively.
These changes are among the structural changes to Social Security 2026 that will benefit many public sector retirees who were affected by those offsets.
Are there changes to the wage base or tax caps?
Yes. One of the changes to Social Security 2026 is the projected increase in the taxable wage base, the maximum earnings subject to Social Security tax.
Higher-income earners will see more wages become taxable under Social Security in 2026.
This change helps boost the tax base supporting the program and potentially raises contributions for high earners.
Do benefit payment methods or policies shift?
While not large, there are procedural changes to keep in mind:
- Despite the government shutdown, Social Security benefit payments will continue unaffected—those are considered essential and are not subject to annual appropriations.
- The delay in data release caused a temporary delay in the COLA announcement, but benefit issuance with the new rate is still expected on schedule in January.
Thus, retirees should expect continuity in payments even as policy parameters evolve.
What should retirees do to prepare for 2026 changes?
Given the changes to Social Security 2026, retirees and near retirees should:
- Check your birth year and FRA to know when you reach full retirement age under new rules.
- Estimate your expected COLA increase and how Medicare premium increases may offset gains.
- Review working plans—if you plan to earn income while receiving benefits, track how the earnings test and tax changes might affect you.
- Recompute your taxable income especially if you expect additional pension or investment income.
- If you’re a public sector retiree affected by GPO or WEP, confirm your benefit adjustments under the new law.
- Watch official Social Security announcements in fall 2025 — especially for the finalized COLA and updated tables.
