Retirement Social Security

You Have Less Than 2 Weeks to Prepare for 4 Big Social Security Changes

COLA, Medicare hikes, and earnings limits all change in less than 2 weeks.

By Katy Willis

Edited by Laura Hohenstein

Updated Dec. 23, 2025

2026 is only a couple of weeks away, and so are the rule changes for Social Security. If you rely on Social Security as a significant part of your income, like many Americans, then you need to know what changes are coming and how best to prepare.

Even a small automatic change can have a big impact. Plus, you need to know what to do so you can maximize your senior benefits.

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Your Social Security check is getting a modest 2.8% increase

Your benefits are getting a 2.8% cost-of-living adjustment (COLA) for 2026. This increase is supposed to protect your purchasing power by keeping up with rising prices. Retirees, survivors, and disability recipients all get this increase.

With inflation sitting at about 3%, the 2.8% COLA won't quite keep pace with the increased cost of living, but it helps. The average retiree's check is rising from about $2,015 to $2,071 in January, which is about an extra $56 per month.

Your COLA notice is available in your "my Social Security" account from late November, so it's worth setting up an account and reviewing your exact gross and net benefit for the coming year. This way, you can see how much extra will actually hit your bank account, and work out where you can best put it to use.

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Medicare premiums are rising

If your Medicare Part B premiums are coming straight out of your check, they'll eat a big chunk of your raise. In 2025, the monthly Part B premium was $185. In 2026, that's rising to $202.90. That almost $18 increase absorbs around a third of the average COLA raise.

If you also pay an income-adjusted Part B premium (IRMAA), but your income has dropped after a significant life event like divorce or widowhood, you may be able to have it removed or reduced with form SSA-44.

If you're struggling, even with the COLA, figure out where you're going to tighten your budget to find that extra $17.90 that the standard Part B premium takes. Perhaps you'll be eating out once less each month, or you'll cancel a subscription you barely use. Whatever you decide, act now. It's also worth seeing if you qualify for Medicare Savings or Extra Help programs.

The earnings test limits are changing for those working while claiming

If you're planning to work and collect Social Security before full retirement age (FRA) in the coming year, you need to know the new limits that trigger the retirement earnings test.

If you're under retirement age all year in 2026, you can earn $24,480. Above that, and the retirement earnings test kicks in. The Social Security Administration (SSA) will automatically withhold $1 for every $2 that you earn from your Social Security check.

If you're working but reaching full retirement age in 2026, you can earn up to $65,160 before SSA temporarily holds back $1 for every $3 that you earn. But only up to the start of the month you reach FRA. Then the earnings test stops.

Your money isn't gone forever. SSA readjusts your benefit amount once you hit FRA to credit you for the months of withholding, which gives your base benefit a little long-term boost. However, you might want to look at your estimated earnings for 2026 and decide if you want to reduce your earnings to avoid the test, or readjust your budget to account for any withholding.

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The wage cap and work credit rules are changing

If you're still working, whether or not you're already getting Social Security, changes to the taxable wage base and the work credit rules can impact you. Or maybe it's your spouse who's still working. Or one or both of you might be trying to earn enough work credits to qualify for benefits.

The maximum amount of earnings subject to Social Security payroll tax is rising to $184,500. If you earn at or above this figure, you'll pay more tax. Compared with 2025, that's $8,400 more of your earnings subjected to tax. So, if you're an employee, you'd pay up to $520.80 more, or $1,041,60 more if you're self-employed.

How much you need to qualify for one work credit is also on the rise. In 2026, you'll now need $1,890 of covered earnings to get a single wage credit. But you can still only earn four each year. For most people, this isn't a significant factor, but if you're approaching retirement and you still don't have the full 40 credits you need to get Social Security, this is an important change.

Bottom line

Over these next two weeks, do everything you can to give yourself a stress-free retirement. Check your COLA notice in your online account to see your gross benefit, deductions, and net deposit. If things look a little lower than you were expecting, check your work history to make sure there are no missing or under-reported years in your top 35.

If you haven't started claiming yet, use these next two weeks to figure out when the best time is to file. Take an honest look at your personal and household finances and how much your benefit would be in 2026 at FRA, or at 70, and see what's the best option based on your current circumstances.

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