5 Social Security Changes to Expect in 2026

Social Security is around 90 years old. And for many decades, the program has been instrumental in helping older Americans stay afloat financially.

Even though Social Security has been around for a long time, the program’s rules tend to change from one year to another. And while it’s too soon to predict exactly how Social Security will change in 2026, here are some general changes workers and retirees should look out for.

1. A cost-of-living adjustment

Each year, Social Security recipients are entitled to a cost-of-living adjustment, or COLA, that’s tied to the rate of inflation. In 2025, benefits received a 2.5% COLA. So far, predictions for next year’s COLA have it coming in slightly lower at 2.4%.

Social Security COLAs are calculated based on third quarter inflation readings, which means it’s premature to come up with an official number. But there’s no reason not to expect a COLA in 2026.

In previous years, seniors on Social Security have gotten stuck with no COLA when inflation didn’t warrant one. Even if inflation continues to cool this year, there’s a good chance Social Security recipients will end up with some type of raise in the new year.

2. A new earnings-test limit

Seniors on Social Security who work and collect benefits before reaching full retirement age (FRA) are subject to an earnings-test limit. That limit dictates how much a job can pay them before they risk having some of their benefits withheld.

This year, Social Security recipients lose $1 per $2 of earnings above $23,400. Those reaching FRA this calendar year lose $1 per $3 of earnings above $62,160.

There’s a good chance these limits will rise in the new year. That should give Social Security beneficiaries an opportunity to earn even more money without having a portion of their monthly checks held back.

3. A higher wage cap

Social Security’s main funding source is payroll tax revenue. Some workers don’t have to pay into the program on all of their income, though.

There’s a wage cap set each year that determines how much income is taxed to fund Social Security. This year, the cap is $176,100, and it’s likely to increase in the new year.

4. A new maximum monthly benefit

Because Social Security limits the amount of income that gets taxed to fund the program, it also limits what it pays out in benefits each month. This year, the maximum monthly Social Security benefit at FRA is $4,018.

Next year, the program’s maximum monthly benefit is likely to increase. And Social Security recipients will have an opportunity to boost their benefits even more by delaying their claims past FRA.

5. A higher threshold to earn work credits

To qualify for Social Security in retirement, workers have to accrue 40 work credits in their lifetime at a maximum of four credits each year. The value of a work credit now is $1,810, but it’s likely to increase in 2026.

For people who work very part-time, this change may be an unwanted one. For people who work full-time, it’s a change that probably won’t even be noticed. Even a minimum wage job makes it possible to earn four work credits in a year if it’s performed on a full-time basis.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.