Retirement Social Security

You Have Less Than a Month to Prepare for 4 Big Social Security Changes

Four major Social Security changes you need to plan for before January.

By David Maina

Edited by Laura Hohenstein

Updated Dec. 12, 2025

Social Security is about to change again, and the deadline to prepare is closing fast. In less than a month, new rules on benefits, taxes, and payment timing will kick in, and they may change how much you receive and how steady your budget feels in early 2026.

Taking a moment to adjust your numbers today can help you avoid money mistakes and spare you headaches next month.

Below, you'll find the four key updates that deserve your attention, and how to prepare before the clock runs out.

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COLA brings a small raise for 2026

Social Security benefits receive a cost-of-living adjustment (COLA) each January to match inflation. For 2026, the increase is 2.8%, based on how prices moved from the third quarter of 2024 to the third quarter of 2025. That percentage gives the average retiree about $56 more each month.

If your Part B premium comes out of your check, your net gain will be smaller. The premium climbs to $202.90 in 2026, up from $185 in 2025, and that increase hits at the same time as the COLA.

Many retirees will see part of the COLA absorbed by that higher premium, which is why the take-home increase often feels smaller than expected.

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Taxable wage base rises to $184,500 in 2026

Another big shift coming in January is the increase in the taxable wage base, the maximum amount of earnings subject to Social Security payroll taxes. In 2026, that cap rises to $184,500, up from $176,100 in 2025.

Most workers never hit this limit, but for those who do, the change affects both what they pay in and what they can eventually receive.

About 6% of workers fall into this group. For them, the higher cap means a larger tax bill now and a slightly higher benefit later, depending on how long they keep earning at that level and when they claim.

If you're still working and your income sits near or above the threshold, expect your 2026 paycheck to reflect the new limit.

Higher retirement earnings test limits for 2026

If you work while collecting Social Security before full retirement age (FRA), the earnings test decides whether part of your check gets withheld. In 2026, the limits rise again.

Here's what changes:

If you stay under the FRA all year, you can earn $24,480 before any withholding.
If you reach FRA in 2026, you can earn $65,160 in the months before your FRA birthday.

In both cases, these rules only apply to work income, which is wages or net self-employment earnings. They do not apply to pensions, IRA withdrawals, investment gains, or rental income.

The withholding works like this:

Under the FRA all year: SSA withholds $1 for every $2 earned above $24,480.
Reaching FRA in 2026: SSA withholds $1 for every $3 earned above $65,160 until the month you reach FRA.
After FRA: the earnings test ends. You can earn any amount without a reduction.

These limits matter even if you work part-time. Many retirees accidentally cross the threshold with a few seasonal shifts or extra hours, and the withholding often shows up later, creating unexpected reductions for several months.

For this reason, take a few minutes to estimate your 2026 income. If you're close to the limit, adjust your hours, delay claiming, or plan ahead so any withholding doesn't catch you by surprise.

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Maximum benefit at full retirement age rises in 2026

The highest Social Security benefit available at full retirement age goes up again in 2026.

SSA reports that the maximum monthly benefit at full retirement age will rise from $4,018 in 2025 to $4,152 in 2026. Only a small group of workers qualify, but the increase reflects how the system adjusts to rising wages.

Reaching this top payout takes decades of strong earnings. Social Security looks at your highest 35 years of work, indexes them to national wage growth, and averages them.

Many advisors note that working longer or delaying your claim past FRA can give your eventual check a meaningful lift. For some retirees, one or two extra high-earning years, or waiting until age 70, can push their monthly benefit higher than they expected.

Bottom line

The 2026 Social Security changes may be small, but they still deserve your attention. If your check plays a big role in your monthly budget, now's the moment to run the numbers and pressure-test your retirement plan. Look at how the new rules affect your budget, your claiming strategy, and your expected cash flow.

If you're still working or close to filing, think of this next month as a chance to adjust your plan. Working a little longer, shifting your claiming strategy, or making a small budget change can have a big impact on how the year starts.

Change is coming either way. But when you move first, you stay ahead of it, and that makes the new year a lot easier to handle.

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