What is changing in Social Security starting in 2026

Social Security is making three significant changes in 2026 that will affect how much money you receive and when you can claim it. The first change raises the full retirement age to 67 for people born in 1960 or later. The second change increases the earnings limit — the amount you can earn from work before Social Security reduces your benefits. The third change adjusts the cost-of-living adjustment, or COLA, which is recalculated each year based on inflation.

These changes were written into law in 1983 and have been rolling out gradually since 2000. They are not new policy decisions — they are scheduled adjustments that have been in effect for decades. Understanding what changes in 2026 matters because it affects your planning decisions now, especially if you are within five to ten years of claiming.

Key Takeaways

  • The full retirement age increases to 67 for people born in 1960 or later, meaning you must wait longer to receive your full benefit amount without a reduction.
  • The earnings limit for people who claim before full retirement age increases each year, allowing you to earn more from work without losing benefits.
  • The cost-of-living adjustment for 2026 will be announced in October 2025 and takes effect in January 2026, based on inflation data from the previous months.
  • If you were born in 1960, you reach full retirement age in 2027, so the 2026 changes affect your claiming strategy if you plan to work past 65.

Full retirement age reaches 67 for people born in 1960 and later

The full retirement age — the age at which you receive 100 percent of your benefit amount — is increasing by two months each year until it reaches 67. For people born in 1960, full retirement age is 67 and 0 months. For people born in 1961, it is 67 and 2 months. This increase continues through 2022 for people born in 1955 and later, and then pauses. Anyone born in 1960 or later will have a full retirement age of 67.

This matters because claiming before your full retirement age results in a permanent reduction to your monthly benefit. If you claim at 62 (the earliest age), your benefit is roughly 30 percent lower than if you wait until 67. If you claim at 65, your benefit is roughly 13 percent lower. The reduction is permanent — it does not increase later. Knowing your full retirement age helps you decide whether to claim early, wait, or claim at full retirement age.

You can still claim as early as 62, but the reduction is steeper when full retirement age is 67 than it was when full retirement age was 66. If you plan to work past 65 or expect to live into your 80s, waiting until 67 or later usually results in more total money over your lifetime.

Earnings limit increases for people who claim before full retirement age

If you claim Social Security before reaching your full retirement age and you continue to work, Social Security reduces your benefit by $1 for every $2 you earn above the annual earnings limit. The earnings limit changes each year based on wage growth. In 2025, the limit is $23,400. In 2026, the limit is expected to increase, though the exact amount is announced in October 2025.

This limit applies only to earnings from work — it does not include investment income, pensions, or other sources. It also applies only in the year you claim and the years before you reach full retirement age. Once you reach full retirement age, there is no earnings limit, and you can earn as much as you want without any reduction to your benefit.

If you are 63 or 64 and still working, the earnings limit affects your decision to claim now or wait. For example, if you earn $50,000 per year and claim at 63, you would lose benefits because your earnings exceed the limit. Waiting until 67 or working part-time instead might preserve more of your benefit.

Cost-of-living adjustment for 2026 will be announced in October 2025

The cost-of-living adjustment, or COLA, is a percentage increase to your Social Security benefit that takes effect each January. It is designed to help your benefit keep pace with inflation. The COLA for 2026 is calculated using inflation data from July 2024 through June 2025 and is announced by Social Security in October 2025.

The COLA varies from year to year. In 2024, it was 3.2 percent. In 2025, it is 2.5 percent. The 2026 COLA depends on inflation during the measurement period and cannot be predicted with certainty until the data is final. Social Security publishes the COLA announcement on its website and sends notices to beneficiaries in December 2025, showing the new benefit amount effective January 2026.

The COLA applies to all Social Security benefits — retirement, survivor, and disability — and also affects the earnings limit and other dollar amounts in the program. If you are planning your retirement budget, you can assume a COLA will occur, but you cannot know the exact percentage until October 2025.

How these changes affect your claiming decision

If you were born in 1960 and are now in your mid-60s, the 2026 changes mean your full retirement age is 67, not 66. If you claim at 62, your reduction is larger than it would have been under the old rules. If you plan to work until 67 or later, the higher earnings limit in 2026 may allow you to earn more without losing benefits, but only if you have not yet reached full retirement age.

If you were born in 1961 or later, your full retirement age is already 67 or higher, so the 2026 change does not directly affect you — it is already in effect. However, the earnings limit increase and the COLA adjustment still explore to you if you claim before full retirement age or if you are already receiving benefits.

The key decision point is whether to claim early and accept a permanent reduction, or wait and receive a higher monthly amount. The 2026 changes do not alter this trade-off, but they do make the numbers different. If you are within five years of claiming, reviewing your full retirement age and your expected earnings can help you decide whether to claim at 62, 67, or somewhere in between.

Where to find your full retirement age and current benefit estimate

You can view your full retirement age and get a benefit estimate by creating an account on ssa.gov, the official Social Security website. You will need to enter your Social Security number, date of birth, and other personal information. Once you log in, you can see your earnings record, your full retirement age, and an estimate of your benefit at different claiming ages.

The estimate is based on your current earnings record and assumes you continue to work at a similar level until you claim. If your earnings change significantly, the estimate will change. You can update your information and run new estimates as your situation changes.

If you do not have internet access or prefer to speak with someone, you can call Social Security at 1-800-772-1213. A representative can answer questions about your full retirement age, your earnings record, and your benefit estimate. Wait times are typically shorter early in the morning and early in the week.

Frequently Asked Questions

Does the full retirement age change affect people who already claimed Social Security?

No. The full retirement age change applies only to people who have not yet claimed. If you already receive Social Security, your benefit amount does not change because of the full retirement age increase. Your benefit was calculated based on the full retirement age that was in effect when you claimed.

Can I claim Social Security at 62 in 2026 even though my full retirement age is 67?

Yes. You can claim as early as 62 regardless of your full retirement age. However, your benefit will be reduced by a larger percentage because your full retirement age is 67 instead of 66. The reduction is permanent, so you will receive less money each month for the rest of your life.

How much will the 2026 earnings limit increase?

The exact amount is announced in October 2025. The limit increases each year based on wage growth in the economy. In recent years, the increase has been between $500 and $1,500 per year, but it varies. You can check ssa.gov in October 2025 for the official 2026 earnings limit.

If I claim before full retirement age and earn above the limit, do I lose my benefits permanently?

No. Your benefit is reduced only in the years you earn above the limit and before you reach full retirement age. Once you reach full retirement age, there is no earnings limit, and your full benefit resumes. Social Security also recalculates your benefit at full retirement age to account for months you did not receive a payment, so you may receive a higher amount later.

Where can I see how the 2026 changes affect my specific situation?

Create an account on ssa.gov and view your benefit estimate at different claiming ages. The estimate will reflect your full retirement age and show you the reduction if you claim early. You can also call 1-800-772-1213 to speak with a representative who can walk you through your options based on your earnings record and birth year.