2 Social Security Changes That Could Hurt You Financially in 2026

Although Social Security has been around for nearly a century, the program’s rules are subject to change year after year. And often, those changes are positive ones.

In 2026, for example, Social Security benefits will be getting a 2.8% cost-of-living adjustment, or COLA. That’s a slightly larger boost than the 2.5% COLA beneficiaries received at the start of 2025.

Social Security’s earnings-test limits are also increasing in 2026. This means that recipients who haven’t reached full retirement age can earn more money before risking having benefits withheld.

But there are two changes coming to Social Security in 2026 that probably won’t be regarded as positive ones. In fact, if you’re still working, these two changes could hurt you financially, so you may want to prepare for them now.

1. Social Security’s wage cap is rising

The money to fund Social Security doesn’t just appear magically. Social Security relies on payroll taxes to stay afloat.

But some workers don’t pay Social Security taxes on all of their income. Each year, the Social Security Administration sets a wage cap, and earnings beyond that threshold are not taxed to fund the program.

In 2025, the wage cap for Social Security tax purposes is $176,100. In 2026, it’s rising to $184,500. This means that higher earners will lose more of their income to taxes.

And to be clear, this is not necessarily a “boo hoo on the wealthy” situation. In some parts of the country, a $184,500 salary doesn’t go very far. So having to pay more taxes could really sting.

If you’re in that boat, one thing you can do to soften the blow is boost contributions to a traditional 401(k) or IRA to shield more of your income from taxes. If you’re eligible to contribute to a health savings account in 2026, that’s another strategy you can employ. But make sure to check your insurance coverage to confirm that your plan is compatible.

2. Social Security work credits are getting harder to earn

For the most part, people qualify for Social Security benefits in retirement by working and paying into the system. There are some exceptions, such as spousal benefits, that do not require a personal earnings history. But if you want to qualify for Social Security on your own, you need to accumulate 40 work credits in your lifetime at a maximum of four credits per year.

In 2025, the value of a Social Security work credit is $1,810. But in 2026, it’s rising to $1,890. This means you’ll need to earn more money to snag your four credits.

Now the good news is that this change shouldn’t impact full-time workers. Even minimum-wage earners who work 40 hours per week and 50 weeks a year have enough money coming in to snag those four work credits and then some. However, if you work part-time, this is a change you’ll want to be mindful of.

If you’ve been trying to get more hours at your current job but can’t, one option you may want to look at is picking up some gig work on top of your part-time job. Freelance wages count toward Social Security as long as you pay taxes on that income, which is something you’re required to do by law anyway.

You might assume that if you’re not retired, you don’t have to pay such close attention to Social Security changes. But as you can see, changes to the program can impact workers — and not necessarily in a good way. Now that you know about these two upcoming changes, you can – and should — take steps to prepare accordingly so your finances aren’t thrown for a loop in 2026.