Retirement Social Security

3 Things Every Retiree Must Know Before Claiming Social Security in 2026

What retirees must know before locking in Social Security benefits.

By David Maina

Edited by Laura Hohenstein

Updated Dec. 25, 2025

Claiming Social Security is a decision that can shape your monthly income for the rest of your life, and in most cases, there's no easy reset button. Small choices, like when you file or how you coordinate benefits, can quietly add up to thousands of dollars over time.

The good news is that preparation still works in your favor. The earlier you understand what 2026 brings, the easier it is to avoid money mistakes and make the most of the rules in place for 2026.

Below are three crucial things every retiree should know before filing for Social Security in 2026.

Learn 7 ways to generate income with a $1,000,000 portfolio

Learn the strategies wealthy retirees use to fund their retirement with $1,000,000 — and how you can, too — with this new guide: The Definitive Guide to Retirement Income from Fisher Investments.

Fisher Investments has helped tens of thousands of investors retire comfortably since 1979. With over $332 billion under management, they provide tailored money management to help achieve long-term goals.

Get your guide here

Your claiming age in 2026 will permanently shape your benefit amount

In 2026, the basic rules for claiming Social Security remain the same. You can start benefits as early as age 62 or delay all the way until age 70.

Claiming early locks in a permanent reduction to your monthly check, while delaying increases your benefit through delayed retirement credits that raise your payment for life.

Here's how the trade-off plays out in practice:

Claiming at 62: If your FRA is 67, filing at 62 reduces your monthly benefit by about 30%, meaning you'll receive roughly 70% of your full amount for the rest of your life.
Delaying past FRA: For each year you wait after FRA, your benefit grows by about 8%, up to age 70, resulting in a meaningfully larger monthly check.

A difference of a few hundred dollars per month may not feel dramatic at 67, but depending on how long your retirement lasts, that gap can quietly turn into tens of thousands of dollars in lost income.

At the same time, waiting is not automatically the right move for everyone. Health, savings, work plans, and cash-flow needs all play a role.

What matters most is recognizing that your claiming age sets the baseline for your Social Security income for life, so it's a decision worth thinking through carefully before you file in 2026.

Who really has the cheapest auto insurance in your area? Check your zip code here.

The Earnings Test could reduce your Social Security checks

When you claim Social Security early and continue earning wages or self-employment income, the Social Security Administration (SSA) limits how much you can earn without affecting your checks. Go over that limit, and SSA withholds part of your benefit for the year.

For 2026, if you are under full retirement age for the entire year:

You can earn up to $24,480 for the year (about $2,040 per month) with no reduction.
Once your earnings exceed that amount, Social Security withholds benefits.
SSA withholds $1 for every $2 you earn above $24,480.

In the year you reach full retirement age:

You can earn up to $65,160 in the months before your FRA birthday.
SSA withholds $1 for every $3 earned above $65,160.
Starting the month you reach FRA, the earnings test ends.
After FRA, you can earn any amount with no reduction in benefits.

To avoid surprises, report your expected earnings to Social Security as soon as you claim. If your income changes mid-year, update it again so withholding stays accurate, and you don't end up with an overpayment you'll need to repay later.

Taxes, Medicare premiums, and COLA can all impact your actual take-home benefit

The Social Security benefit listed on your award letter is not always the amount that lands in your bank account. Several built-in deductions and adjustments can change what you actually receive each month.

For instance, Social Security benefits can be taxable, depending on your combined income (adjusted gross income + nontaxable interest + half of your benefits).

Single filers: taxes may apply above $25,000
Married filing jointly: taxes may apply above $32,000
At higher income levels, up to 85% of benefits can be taxable

Medicare is the next major deduction. Most retirees enroll around age 65, and premiums are usually taken out automatically.

In 2026:

Medicare Part B: The standard premium is $202.90 per month, up from $185.00 in 2025, and it's deducted directly from your benefit.
Higher-income retirees: If your income exceeds $109,000 (single) or $218,000 (married), you'll pay additional Part B surcharges, which further reduce your monthly deposit.
Part D premiums: If you have prescription drug coverage, those premiums may also be withheld from your Social Security check.

Because these deductions happen automatically, the amount you receive can be noticeably lower than your stated benefit.

Also note that Social Security benefits increase by 2.8% in 2026, starting with January payments, and that adjustment is already included if you begin benefits next year. For the average retired worker, that's about $56 more per month, raising the benefit from roughly $2,015 to $2,071.

At the same time, the standard Part B premium increases by $17.90. For many retirees, that means roughly one-third of the COLA disappears immediately due to Medicare alone.

That's why, when planning your 2026 budget, it's important to look past the headline increase and focus on the amount that will actually land in your account each month.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Bottom line

Claiming Social Security is a bigger decision than many retirees realize, and small missteps, like filing too early or skipping proper budgeting, can set you back for years. The key is knowing what's coming and planning around it.

When you factor in deductions, adjust your budget, and set realistic expectations, the system feels far less intimidating and easier to manage. That kind of clarity goes a long way toward a stress-free retirement, where surprises don't derail your peace of mind.

More from FinanceBuzz: