Retirement Social Security

5 Hidden Policy Changes That Could Shrink Your Social Security Check

A handful of quiet Social Security rule changes in 2026 could reduce your benefits more than you expect.

By David Maina

Edited by Sara Albertelli

Updated Nov. 26, 2025

Most retirees focus on the annual Social Security raise, but many miss the smaller policy shifts that can cut into their checks. These changes rarely make headlines, yet they still affect how much you keep each month.

In 2026 and the years ahead, higher Medicare premiums, stricter overpayment recovery rules, and tax thresholds could all reduce your take-home amount.

Below, you'll see the key changes so you can plan ahead for a more stress-free retirement.

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Higher Medicare Part B premiums

Medicare premiums remain one of the biggest automatic deductions from Social Security checks, and 2026 brings a noticeable increase. The standard Part B premium rises 9.7%, moving from $185.00 to $202.90 per month.

For most retirees, that means $17.90 more will be withheld each month, an amount that absorbs a significant portion of the new 2.8% COLA.

And because Medicare premiums come out before you receive your deposit, your check may show an increase on paper, but the amount you actually take home could change very little once the higher deduction is applied.

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Earnings test rules for people who keep working

Working after you claim Social Security can still reduce your monthly check if you haven't reached full retirement age (FRA).

Next year, the limit for people under FRA increases to $24,480. In the year you reach FRA, the limit rises to $65,160 for the months before your birthday.

Here's how the rules work:

Before FRA: SSA withholds $1 in benefits for every $2 you earn above $24,480.
Year you reach FRA: SSA withholds $1 for every $3 earned above $65,160 (but only for the months before your birthday).

For example, if you earn $40,000 in 2026 before FRA, that's $15,520 over the limit. SSA would withhold $7,760 in benefits.

Many retirees assume they can simply work and keep their full benefit, but the earnings test can cut checks sharply if you cross the line, even by a modest amount.

If part-time work is part of your plan, keep an eye on your income throughout the year. Staying within the limit can help you avoid an unexpected reduction in your Social Security payments.

Stronger Social Security overpayment clawbacks

Benefit overpayments happen when the Social Security Administration later determines it paid you more than you were entitled to, often because of reporting errors, delayed updates to your earnings record, or family-status changes.

In 2024, SSA eased the burden by limiting withholdings to 10% of your monthly check. That policy has now changed.

Starting with new overpayments identified after April 25, 2025, the SSA will default to withholding 50% of your benefit each month. You can appeal or ask for a lower rate, but the burden is on you to act quickly.

A few quick tips:

Watch your mail and your SSA "Message Center" for any overpayment notices.
Respond fast if you think the amount is wrong.
Ask for an appeal, waiver, or lower withholding rate if repayment creates hardship.

Keeping an eye on these notices can prevent an unexpected shock to your monthly income.

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Federal debt collections start again

During the pandemic, the SSA paused certain collections of old debts. That pause has now ended.

Starting in 2025, the agency resumed the Treasury Offset Program (TOP), which allows the federal government to collect old debts by withholding money from Social Security payments and other federal benefits.

According to the SSA, more than 280,000 people with roughly $2.7 billion in pre-2020 debts are now subject to collection through this program. For retirees, this can lead to sudden reductions in income.

If you owe back taxes, child support, federal student loans, court fines, or an old Social Security overpayment, the government can intercept tax refunds or simply deduct money straight from your monthly check.

TOP collections can be abrupt, and understanding your status ahead of time can help prevent a surprise reduction in your benefit.

A higher FRA means smaller checks if you claim early

Another change that can shrink future benefits is the final shift in Social Security's full retirement age. Beginning in 2026, anyone born in 1960 or later will have an FRA of 67, rather than 66 and 10 months.

A higher FRA means a deeper reduction if you file early. Someone who claims at 62 with a full retirement age of 67 receives roughly 24% less than the full benefit amount.

Many people don't realize this shift applies to their cohort until they begin the application process, which is why the reduction can feel like a surprise.

Always check the SSA's calculator with your birthdate to know your exact FRA and adjust your claiming strategy accordingly.

Bottom line

These policy shifts may feel small on paper, but they can make a noticeable difference when you're living on a fixed income.

That's why keeping an eye on every Medicare statement, SSA letter, or online notice matters. It also helps to keep simple records of your income, premiums, and tax documents.

The more you understand these changes, the easier it becomes to anticipate how they might affect your monthly check and overall retirement plan.

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