Retirement Social Security

7 Signs Your Social Security Benefits Could Be Reduced in 2026

Pay attention to these warning signs that your 2026 Social Security check may shrink.

By Katy Willis

Edited by Sara Albertelli

Updated Nov. 26, 2025

Most retirees expect their monthly Social Security check to rise a little each year with the cost-of-living adjustment (COLA). The trouble comes when people forget that COLA isn't the only thing affecting their benefit amount. Income, tax, Medicare, and administrative issues can all reduce the benefit amount that actually lands in your bank account. And sometimes that happens without much, if any, notice.

However, all of these problems are preventable if you know what to look for. You can avoid mistakes that might derail your retirement plan by making a few quick fixes now rather than waiting for the reduction to happen.

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You've filed and triggered the earnings test

If you claim Social Security before your full retirement age (FRA), the Social Security Administration (SSA) places an annual cap on how much you can earn from work without temporarily reducing your benefit. For 2026, retirees who are not at full retirement age can earn up to $24,480. Above this amount, the SSA withholds $1 for every $2 that you earn.

Retirees who do reach FRA in 2026 can earn up to $65,160 before the SSA starts withholding, and then they only withhold $1 in every $3. The earnings test ends at the start of the month that you reach FRA.

If you trigger the earnings test without realizing it, the reduced or skipped Social Security check can come as a nasty surprise if you are relying on that money to support your immediate needs. You won't lose the money forever, because the SSA recalculates your benefits to compensate for the withholding when you reach full retirement age.

Until then, this can make your benefit significantly lower than you planned for 2026. Your best option is to carefully track how much you earn and predict how much you think you'll earn. If you're close to the line, consider cutting back on hours or simply plan your new budget around the temporarily reduced benefit.

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Your income pushes more of your benefits into the taxable range

Federal taxes are another way your net Social Security income can shrink. Up to 50% of your benefits become taxable once your combined income exceeds $25,000 for individuals, and $32,000 for joint filers. If your combined income exceeds $34,000 as a single filer or $44,000 for joint filers, up to 85% of your benefit becomes taxable. Combined income is your adjusted gross income, plus nontaxable interest, plus half of your Social Security benefits.

These earnings thresholds haven't changed in decades because they aren't adjusted for inflation. This was done intentionally, with the idea that all Social Security benefits would be taxed over time. That means a Roth conversion, extra work, or a large retirement account withdrawal can mean your benefit amount is greatly reduced by taxes.

Look at your predicted income for 2026 so you have a good idea of your tax obligations. If you know you'll likely fall into one of these tax brackets, it might be worth asking the IRS to automatically withhold 7%, 10%, 12%, or 22% of your benefit amount. You may also want to talk to a tax pro about spreading withdrawals over multiple years or using more tax-efficient accounts. That way, you're not caught off guard by a big tax bill the following year.

Your 2024 income may trigger higher Medicare premiums

If you're on Medicare, your Part B (and sometimes Part D) premiums are usually taken straight out of your Social Security check. Higher-income retirees pay extra surcharges in the form of an income-related monthly adjustment amount (IRMAA). Those charges are based on your income from two years ago, so 2024 tax returns drive the 2026 IRMAA decisions.

If your income rose above the IRMAA threshold in 2024, your 2026 Medicare premiums can increase dramatically. And if you're not prepared for it, the reduction in your deposit can be stressful.

So be proactive. Check whether your 2024 income crossed the IRMAA bracket. If you've since had a life-changing event, such as a divorce, the death of a spouse, retirement, or other significant factor that's reduced your income, you can use Form SSA-44 to request that the SSA reconsider and reduce or remove the IRMAA surcharges.

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You have an unresolved Social Security overpayment

Overpayments happen when the SSA later decides you were paid more than you should have received. This might be, for example, because of late earnings updates or benefit category changes.

If you don't respond to the notice, the SSA may start withholding part of your benefits. This could be as much as 50% and will last until the full overpayment is reclaimed. You can appeal using Form SSA-561 if you disagree with the overpayment. Or, if the repayment would cause you hardship and you weren't at fault, you can request a waiver with Form SSA-632. And you can ask to reduce the amount the SSA withholds each month.

Your earnings record has errors or missing wages

Your retirement benefit is based on your 35 highest-earning years using a formula for average indexed monthly earnings (AIME), so it's important that every dollar is accounted for.

If wages from any year that made it into your top 35 were reported incorrectly or not recorded at all, they will be included in your AIME calculations. Even just a few under-reported years can significantly reduce your benefit amount for life.

The easiest way to spot and correct errors is to log in to your "my Social Security" account and review your earnings history. Check for errors, and if you find any, request a correction if you have proof, like W-2s or tax returns.

You recently had a major life change that the SSA hasn't processed

Events like divorce, the death of a spouse, remarriage, or changes in dependent children can affect spousal and survivor benefits. If the SSA still has outdated information, your payment may be too high or too low. But eventually they'll spot the issue and adjust it.

Even though, in an ideal world, your benefit is stable, the SSA can recalculate your entitlement when a significant change occurs. If they've overpaid you, they may begin withholding part of your future checks to recoup the excess.

If you've had a life change, make sure the SSA has updated documentation. Ask a professional whether switching to a spousal or survivor benefit or back to your own record is the best option for your specific situation.

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Bottom line

While the 2026 COLA of 2.8% is automatic, that doesn't mean you'll receive as much as you expect. You need to review your earnings record, your projected earnings, potential tax obligations, and Medicare charges.

Log in to your "my Social Security" account and check your earnings record. While you're there, check your COLA notice to see your exact gross benefit amount, any deductions, and the net you'll actually receive. To maximize your senior benefits, talk to a pro who specializes in senior finance.

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