Social Security changes 2026: What’s coming? What’s not? Will it run out?
Social Security is changing in 2026—and not all of it is good news. From rising retirement ages to looming benefit cuts, Americans face a shifting financial landscape. A new law signed by President Trump is only accelerating the crisis.
Cost-of-living bump coming in 2026
Social Security recipients can expect a raise in 2026.
The Senior Citizens League estimates a 2.6% cost-of-living adjustment (COLA), slightly higher than 2025’s 2.5% increase. The Social Security Administration will announce the final number in October based on third-quarter inflation data.
A COLA freeze remains possible, but unlikely. Since 2009, the government skipped adjustments only three times.
Full retirement age hits 67
Beginning January 1, 2026, the full retirement age (FRA) officially becomes 67 for anyone born in 1960 or later.
Congress set this change in motion decades ago through a phased plan. Early retirement will still begin at 62. Maximum benefits will still kick in at age 70.
Higher wage cap for Social Security taxes
Workers will pay taxes on more of their income in 2026.
The current maximum taxable earnings for Social Security sit at $176,100. Projections show that threshold rising to $183,600 next year, based on national wage trends.
Medicare taxes still apply to all income, with no upper limit.
Trump’s law moves up trust fund depletion
President Donald Trump signed the One, Big, Beautiful Bill into law on July 4, 2025. The bill’s title promises relief, but analysts say it delivers financial pressure instead.
The new law reduces Social Security’s incoming tax revenue, which speeds up the depletion of its trust fund. The fund was already set to run out in 2033. Now, the end could arrive even sooner.
Without new legislation, Social Security will slash benefits by 23% once the fund dries up.
Retirees get a temporary tax break
Trump’s law includes a new standard deduction for older people that boosts after-tax income for many:
- Up to $6,000 extra for single filers
- Up to $12,000 extra for married couples filing jointly
According to the White House, nearly 88% of retirees will avoid paying taxes on their Social Security benefits under this provision.
However, this “senior bonus” only lasts through 2028, and higher earners won’t qualify.
The deduction starts to phase out at:
- $75,000 MAGI for single filers
- $150,000 MAGI for couples
Anyone earning above $175,000 (single) or $250,000 (joint) receives no bonus at all.
What comes next?
Lawmakers face growing pressure to fix Social Security’s long-term funding gap. Retirees near the edge of claiming could see cuts if Congress doesn’t act soon.
Meanwhile, younger workers may need to save more on their own to stay secure in retirement. With major changes already in motion, the program’s future now sits at the center of the 2026 election cycle.