With Christmas decorations still up and 2025 winding down, millions of retirees and near-retirees are about to see several important Social Security changes take effect in January 2026. From the new cost-of-living adjustment (COLA) to updated earnings limits and Medicare premium numbers, these 2026 Social Security updates will directly affect your monthly budget. Here’s everything you need to know before the calendar flips.
1. The 2026 Social Security COLA Has Been Announced
The Social Security Administration confirmed a 2.5% cost-of-living adjustment for 2026 — slightly lower than the 3.2% increase in 2025 and dramatically lower than the 8.7% jump in 2023.
- Average retiree benefit will rise from $1,927 to approximately $1,975 per month
- Maximum benefit at full retirement age increases to $4,018 per month (up from $3,911)
- SSI federal payment standard jumps to $967 for individuals and $1,450 for couples
While any increase helps combat inflation, many retirees feel the 2.5% COLA won’t fully keep pace with actual rising costs for healthcare and housing in 2026.
2. New Wage Base and Earnings Test Limits
If you’re still working while collecting Social Security before full retirement age, pay attention to these updated numbers:
- Social Security taxable wage base rises to $176,100 (from $168,600 in 2025)
- Earnings limit for those under full retirement age all year: $23,400 ($1 deducted for every $2 earned above)
- Higher limit in the year you reach FRA: $62,160 ($1 deducted for every $3 earned above, only counting months before FRA)
Good news: Once you hit full retirement age in 2026, the earnings test disappears completely.
3. Full Retirement Age Creeps Higher Again
Anyone born in 1960 or later now has a full retirement age of 67. If you were born in 1959, your FRA is 66 and 10 months. Claiming benefits before your full retirement age in 2026 still means a permanent reduction — up to 30% if you start at 62.
4. Medicare Part B Premiums and IRMAA Brackets Are Rising
Social Security and Medicare remain tightly linked:
- Standard Medicare Part B premium for 2026: $185.00 per month (up from $174.70)
- Part B deductible increases to $257
- Higher-income beneficiaries (IRMAA) will see even steeper jumps — the top tier will pay $628.90 per month for Part B
Most retirees have Medicare premiums deducted directly from their Social Security check, so expect your net benefit in January 2026 to be lower than the headline COLA increase suggests.
5. Maximum Social Security Benefit Hits a New Record
The highest possible Social Security benefit for someone retiring at full retirement age in 2026 is now $4,018 per month — but you’d need 35 years of maximum taxable earnings and to wait until FRA (or beyond) to qualify.
6. Spousal and Survivor Benefits Get the Same 2.5% Boost
Spousal benefits (up to 50% of the higher earner’s amount) and survivor benefits also receive the full 2.5% COLA in 2026. However, the family maximum limit rises to $6,058 per month for new claims.
7. Key Dates to Mark on Your 2026 Calendar
- December 31, 2025 – Last day to withdraw a Social Security application (if within 12 months and first repayment)
- January 2026 statements – First payment reflecting the new COLA (usually arrives the second, third, or fourth Wednesday depending on birth date)
- April 2026 – New IRMAA determinations mailed based on 2024 tax returns
Final Thoughts Before 2026 Begins
The 2026 Social Security changes bring a modest COLA, higher earnings limits, and unfortunately higher Medicare costs. While the system remains solvent for now, long-term projections still show the trust fund heading toward depletion in the mid-2030s unless Congress acts.
The smartest move? Log into your mySocialSecurity account before December 31st, review your earnings record, and run different claiming scenarios. A few months’ delay in claiming can sometimes add thousands of dollars to your lifetime benefits.
Stay informed, plan ahead, and enjoy a financially secure 2026!