Retirement Social Security

You Have Less Than 6 Weeks to Prepare for 4 Big Social Security Changes

A clear look at five upcoming Social Security changes that could affect your income in early 2026.

By David Maina

Edited by Sara Albertelli

Updated Dec. 1, 2025

As 2025 winds down, you have less than six weeks before new Social Security rules take effect. These changes will shift how much you receive and how far you can maximize your senior benefits in the year ahead.

If you rely on Social Security for part of your income, now is the time to get familiar with what's coming. A little preparation makes it easier to adjust your budget, update your paperwork, and avoid surprises when January arrives.

Below, we explain the four major updates on the way and what each one could mean for your monthly check.

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The 2026 COLA gives retirees a modest increase

Social Security checks will get a 2.8% boost in 2026. This annual cost-of-living adjustment (COLA) is meant to keep pace with rising prices, and it applies to retirees, survivors, and disability beneficiaries alike.

In real numbers, the average retired worker's monthly benefit is expected to rise from about $2,015 to $2,071 starting in January. The 2.8% increase may not outrun higher inflation, but it still gives you more income than if benefits stayed flat.

Nearly 71 million people will receive an official COLA notice in late November 2025. You can view it through your my Social Security account. Setting up an online account now makes it easier to see your new amount as soon as it's posted.

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Medicare Part B premium jump

One of the biggest cost increases for retirees in 2026 is Medicare Part B. The standard monthly premium rises from $185.00 in 2025 to $202.90 in 2026. That's a $17.90 jump, about 9.7%. The annual Part B deductible also increases from $257 to $283.

Because most enrollees have their premium taken directly out of their Social Security check, this change will cut into your COLA. In practical terms, the $17.90 increase will absorb part of your 2.8% raise.

Here's how to stay ahead of it:

Rework your budget: If your premiums come out of your Social Security deposit, plan for roughly $18 less in take-home each month. Review your January statement and adjust for any Part D or Medigap increases as well.
Consider alternative coverage: For some retirees, switching from Original Medicare plus Medigap to a Medicare Advantage plan can lower overall costs. Compare plans during the Annual Enrollment Period, which ends on December 7.
Check for financial assistance: If the increase strains your budget, look into Medicare Savings Programs or Extra Help. These programs can cover Part B premiums or reduce drug costs if your income and assets fall within the limits.

Knowing these changes now helps you prepare for January and keeps your 2026 budget on steadier ground.

The earnings limits rise for workers collecting benefits

If you plan to work in 2026 while collecting Social Security before full retirement age (FRA), pay close attention to the new earnings limits. Social Security uses an "earnings test" that withholds part of your benefit if your wages exceed certain amounts. The limits rise slightly next year.

If you're under FRA all year: You can earn up to $24,480 in 2026. Anything above that triggers a withholding of $1 in benefits for every $2 you earn over the limit.
If you reach FRA in 2026: The limit jumps to $65,160 for the months before you hit FRA. Above that, SSA withholds $1 for every $3 until the month you reach FRA. After that, there's no limit.

The earnings test can feel harsh, but the withheld money isn't gone forever. SSA adjusts your benefit once you reach FRA, giving you credit for months when benefits were withheld.

If you think you'll earn more than the limit, plan ahead. Estimate your income for the year and decide whether you want to claim now or wait until you reach FRA.

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High earners will pay tax on more income next year

Starting January 1, 2026, the maximum amount of earnings subject to Social Security tax rises to $184,500, up from $176,100 in 2025. That means workers and the self-employed will pay the 6.2% Social Security tax on a larger slice of income next year.

If you expect to earn near or above that amount, you'll see FICA (Federal Insurance Contributions Act) withholding continue until you hit the new ceiling. Once your wages pass $184,500, the Social Security portion of your payroll tax stops for the rest of the year.

This change matters most for high earners and business owners:

Self-employed workers pay both the employer and employee share of Social Security tax, so the higher cap should be factored into 2026 quarterly estimates.
High earners may pay a bit more in payroll tax but also add slightly more to their earnings record, which can result in a small bump to future benefits.

For retirees, this update doesn't affect monthly checks directly. It's mainly a shift for people still working, and another example of how Social Security adjusts with wage growth each year.

Bottom line

These changes happen automatically, but understanding them now can make your retirement plan feel more manageable. Take a little time over the next few weeks to review your online SSA account, update your budget, and run your new numbers. If anything looks unclear, reach out to a financial advisor or the SSA directly.

When January arrives, you'll know what's changing, why it's happening, and how it affects your check, so the new year feels more predictable and much less stressful.

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