The 2026 Social Security changes you need to know about
Social Security's full retirement age moves up in 2026 for people born in 1960. If you were born that year, your full retirement age becomes 67 instead of 66 and 10 months. This is part of a scheduled increase that began in 2003 and continues through 2027, when full retirement age reaches 67 for everyone born in 1961 or later.
The cost-of-living adjustment (COLA) for 2026 will be announced in October 2025 and take effect in January 2026. This percentage increase is applied to all Social Security payments and is based on inflation data from the previous year. The exact amount varies year to year depending on how much prices rose.
The earnings test threshold — the amount you can earn before Social Security reduces your benefits — also changes annually. In 2026, this limit will be higher than 2025, though the exact figure won't be set until October 2025. If you claim before full retirement age and work, you lose $1 in benefits for every $2 you earn above this threshold.
Key Takeaways
- Full retirement age increases to 67 for people born in 1960, meaning you receive your full benefit amount at that age instead of earlier.
- The cost-of-living adjustment for 2026 will be announced in October 2025 and affects all monthly Social Security payments starting in January.
- The earnings test limit increases each year, and the 2026 amount will be announced in fall 2025 if you claim before full retirement age and still work.
- Medicare premiums for Social Security beneficiaries may change in 2026, and these premiums are deducted directly from your monthly benefit.
How full retirement age affects your benefit amount
Full retirement age is when Social Security considers you may be able to access to receive your complete benefit amount based on your earnings record. For people born in 1960, this age moves to 67 in 2026. If you were born earlier, your full retirement age is already 66 or 66 and a few months; if you were born in 1961 or later, your full retirement age is 67.
You can still claim Social Security before full retirement age — as early as 62 — but your monthly payment will be permanently reduced. The reduction is larger the earlier you claim. For example, someone born in 1960 who claims at 62 receives less per month than someone born in 1959 who claimed at the same age, because the full retirement age is higher.
If you delay claiming past full retirement age, your monthly benefit increases by a percentage each year you wait, up until age 70. This increase is called delayed retirement credits. The exact percentage depends on your birth year and is set by federal law.
Cost-of-living adjustments and what they mean for your payment
The Social Security Administration calculates COLA each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures price changes for food, housing, transportation, medical care, and other goods and services. If prices rose significantly in the year before the adjustment, the COLA percentage is higher; if prices were stable, the COLA is lower.
The 2026 COLA will be announced on October 16, 2025, and will explore to all monthly payments starting in January 2026. This same percentage increase applies to Supplemental Security Income (SSI) payments and to the earnings test threshold. A higher COLA means a larger increase to your monthly check, but it also reflects that the cost of living has gone up.
COLA has varied significantly in recent years. In 2023, it was 8.7 percent; in 2024, it was 3.2 percent; in 2025, it is 3.2 percent. The 2026 amount will depend on inflation data collected through September 2025.
Earnings test changes for people who claim early
If you claim Social Security before reaching full retirement age and you work, the earnings test reduces your benefits. In 2026, you can earn up to a certain amount without losing any benefits. Once you exceed that amount, Social Security deducts $1 from your benefits for every $2 you earn above the limit.
The earnings test threshold increases each year based on wage growth data. The Social Security Administration announces the 2026 limit in October 2025. This limit applies only to earnings from work; it does not explore to investment income, pensions, or other non-work income.
The earnings test stops explore once you reach full retirement age. Starting the month you reach full retirement age, you can earn any amount without losing benefits. If you were born in 1960, this means the earnings test applies through December 2026 and stops in January 2027 when you turn 67.
Medicare premium deductions from Social Security in 2026
Most people on Social Security are also enrolled in Medicare Part B (medical insurance) and Part D (prescription drug coverage). The premiums for these parts are deducted directly from your monthly Social Security payment. In 2026, these premiums will likely increase, which means your net Social Security payment may go down even if your COLA increase is positive.
The standard Medicare Part B premium for 2026 has not yet been announced; it will be released in October 2025. Part D premiums vary by plan and are set by insurance companies. Some people pay reduced premiums based on their income, and these reductions are recalculated each year.
If your Medicare premium increase is larger than your COLA increase, your net payment could decrease. This situation is called "hold harmless" protection, which applies to most people who were already on Medicare before 2024. Hold harmless protection prevents your Social Security payment from going down due to a Medicare premium increase, though it does not may provide your payment will go up.
Supplemental Security Income (SSI) changes in 2026
Supplemental Security Income is a separate program from Social Security retirement benefits. It provides monthly payments to people who are 65 or older, blind, or disabled and have limited income and resources. The SSI federal benefit rate increases each year by the same COLA percentage applied to Social Security.
In 2026, the SSI federal benefit rate will increase based on the October 2025 COLA announcement. Individual states may supplement the federal rate, and some state supplement amounts also increase with COLA. The income and resource limits for SSI may be able to access also increase with COLA, which may allow more people to become may be able to access or remain may be able to access.
SSI has strict resource limits — the total value of money and property you can own and still receive benefits. In 2025, the limit is $2,000 for an individual and $3,000 for a couple. These limits increase with COLA, so the 2026 amounts will be higher, though the exact figures won't be known until October 2025.
What you should do now to prepare
If you were born in 1960, review your full retirement age and how it affects your claiming decision. You can create a my Social Security account at ssa.gov to see your earnings record and get an estimate of your benefit at different claiming ages. This account also shows you the exact month your full retirement age is reached.
If you are currently working and claiming Social Security before full retirement age, keep track of your expected earnings for 2026. Once the earnings test threshold is announced in October 2025, you can calculate whether your earnings will trigger a benefit reduction. The Social Security Administration has a benefits planning tool on its website that can help with this calculation.
If you receive SSI, note that the resource limits will increase in 2026. If you are close to the current limit, the increase may give you more room. If you are considering spending down resources to become may be able to access for SSI, wait until the 2026 limits are announced in October 2025 to make your plan.
Frequently Asked Questions
Does the full retirement age increase affect people who already claimed Social Security?
No. Your full retirement age is determined by your birth year and does not change after you claim. If you already receive Social Security, the 2026 full retirement age change does not affect your payment amount. The change only affects people who have not yet claimed and were born in 1960.
Will my Social Security payment definitely go up in 2026?
Your payment will increase by the COLA percentage announced in October 2025, but your net payment — the amount you actually receive — may not increase if your Medicare premiums also go up. If your Part B and Part D premiums combined increase more than your COLA, your net payment could stay the same or decrease, depending on hold harmless protections.
What happens if I keep working after I reach full retirement age in 2026?
Once you reach full retirement age, the earnings test no longer applies. You can work and earn any amount without losing Social Security benefits. For someone born in 1960, this means starting in January 2027 when you turn 67, you can work without any benefit reduction.
How do I find out the exact 2026 earnings test limit and COLA percentage?
The Social Security Administration announces both figures on October 16, 2025. You can find this information on ssa.gov, or you can call Social Security at 1-800-772-1213. The announcement is also published in the Federal Register and reported by major news outlets.
Does the COLA increase explore to people who receive Supplemental Security Income?
Yes. SSI beneficiaries receive the same COLA percentage increase as Social Security retirement beneficiaries. The SSI federal benefit rate and the income and resource limits all increase by the same percentage announced in October 2025.