Three major Social Security changes take effect in 2026
Starting in 2026, Social Security is making three significant changes that will affect how much money you receive, when you can claim it, and how work affects your benefits. The first change raises the full retirement age — the age at which you receive 100 percent of your benefit — to 67 for people born in 1960 or later. The second change increases the earnings test limit, which determines how much you can earn from work before Social Security reduces your benefit. The third change adjusts the cost-of-living adjustment (COLA), which is recalculated every year based on inflation.
These changes do not happen all at once. The full retirement age increase began in 2003 and continues gradually through 2027. The earnings test limit changes every year. The COLA for 2026 will be announced in October 2025. Understanding what changes in 2026 specifically helps you plan when to claim benefits and how much you might receive.
Key Takeaways
- The full retirement age reaches 66 and 10 months in 2026 for people born in 1955, and continues rising to 67 for those born in 1960 or later.
- The earnings test limit — how much you can earn before benefits are reduced — increases each year and will be higher in 2026 than in 2025.
- The 2026 cost-of-living adjustment will be announced in October 2025 and determines how much all benefit payments increase starting in January 2026.
- Claiming before your full retirement age means a permanently lower monthly benefit, and the reduction is larger if your full retirement age is 67 rather than 66.
Full Retirement Age Continues Rising to 67
Your full retirement age is the age at which Social Security pays you your complete benefit amount — neither reduced nor increased. In 2026, the full retirement age will be 66 and 10 months for people born in 1955. For people born in 1956, it will be 66 and 11 months. For people born in 1960 or later, it will be 67.
This matters because claiming before your full retirement age means Social Security permanently reduces your monthly payment. The reduction is steeper when your full retirement age is 67 than when it was 66. For example, if your full retirement age is 67 and you claim at 62, your benefit is reduced by about 30 percent. If your full retirement age had been 66, the reduction would have been about 25 percent. The older your full retirement age, the larger the penalty for claiming early.
You can still claim as early as age 62, but the reduction applies for the rest of your life. You can also delay claiming past your full retirement age and receive an increased benefit — about 8 percent more per year you wait, up to age 70. The full retirement age increase does not change these rules; it only changes where the baseline sits.
Earnings Test Limit Increases Each Year
If you claim Social Security before your full retirement age and continue working, Social Security reduces your benefit based on how much you earn. This is called the earnings test. The earnings test limit — the amount you can earn before reductions begin — increases every year based on wage growth. In 2026, this limit will be higher than in 2025, though the exact amount will not be announced until late 2025.
The earnings test works in two stages. For earnings above the first limit, Social Security deducts $1 from your benefit for every $2 you earn. For earnings above a second, higher limit in the year you reach your full retirement age, Social Security deducts $1 for every $3 you earn. Once you reach your full retirement age, the earnings test stops and you receive your full benefit regardless of how much you work.
This change matters most if you are claiming before your full retirement age and working part-time or full-time. The higher limit in 2026 means you can earn more without triggering a reduction. If you are already receiving benefits and planning to work more in 2026, check the updated limit when it is announced in October 2025.
Cost-of-Living Adjustment for 2026
Every January, Social Security increases all benefit payments by a percentage called the cost-of-living adjustment (COLA). This adjustment is based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September of the prior year. The 2026 COLA will be announced on October 10, 2025, and will take effect on January 1, 2026.
The COLA percentage varies year to year depending on inflation. In recent years, COLA has ranged from 0 percent (in 2010 and 2011) to 8.7 percent (in 2023). The 2026 COLA will be whatever inflation was during summer and early fall 2025. This adjustment applies to all Social Security benefits — retirement, survivor, and disability — and also to Supplemental Security Income (SSI).
If you are already receiving benefits, the increase happens automatically. If you are planning to claim in 2026, your benefit amount will be calculated using the 2026 benefit formula, which includes the COLA increase. You do not need to do anything to receive the adjustment.
How These Changes Affect When You Should Claim
The combination of a higher full retirement age and higher earnings limits changes the math for deciding when to claim. If your full retirement age is 67 rather than 66, the penalty for claiming at 62 is larger, which makes waiting longer more valuable financially. If you plan to work past 62, the higher earnings limit in 2026 means you can earn more without losing benefits.
There is no single "right" age to claim. The decision depends on your health, life expectancy, financial needs, and work plans. Someone in poor health who needs income now might claim at 62 despite the reduction. Someone in good health with other income might wait until 70 to maximize the monthly benefit. The 2026 changes do not create a new important date; they straightforward shift the numbers you use to make your decision.
If you were born in 1955 or earlier, your full retirement age is already set and will not change in 2026. If you were born between 1955 and 1960, your full retirement age will continue rising gradually. If you were born in 1960 or later, your full retirement age is 67. Understanding your own full retirement age is the first step in planning when to claim.
What to Do Before 2026 Arrives
If you are approaching age 62 or are already receiving benefits, review your Social Security statement at ssa.gov to confirm your earnings record is correct. Errors in your earnings history can reduce your benefit amount. You can create a my Social Security account to view your statement online and see estimates of what you might receive at different claiming ages.
If you are still working and plan to claim before your full retirement age, note the 2025 earnings test limit now and watch for the 2026 limit when it is announced in October 2025. If you are close to the limit, the increase might change whether you can work more without triggering a reduction. If you are already receiving benefits and working, the higher limit in 2026 might mean a smaller reduction or no reduction at all.
If you have questions about how these changes affect your specific situation, you can contact Social Security directly at 1-800-772-1213 or visit your local Social Security office. Social Security staff can explain how your full retirement age, earnings, and claiming age interact in your case.
Frequently Asked Questions
Does the full retirement age change affect people already receiving benefits?
No. Your full retirement age is set when you claim. If you already claimed, your benefit amount is locked in and will not change because of the full retirement age increase. The increase only affects people who have not yet claimed.
What if I was born in 1960 — is my full retirement age definitely 67?
Yes. For anyone born in 1960 or later, the full retirement age is 67. This is the final step of the gradual increase that began in 2003. There are no further increases planned.
Will the earnings test limit increase be announced before 2026 starts?
Yes. The 2026 earnings test limit is announced in October 2025, giving you time to plan before January 2026. You can find the updated limit on the Social Security website or by calling 1-800-772-1213.
If I claim at 62 in 2026, how much will my benefit be reduced?
The reduction depends on your full retirement age. If your full retirement age is 67, claiming at 62 reduces your benefit by about 30 percent. If your full retirement age is 66 and 10 months, the reduction is slightly less. Social Security can provide a personalized estimate if you create a my Social Security account.
Does the COLA increase explore to people who claim in 2026?
Yes. Your benefit is calculated using the 2026 benefit formula, which includes the 2026 COLA. The increase is built into your starting benefit amount, not added later.