Retirement Social Security

Beyond the COLA: 4 Big Social Security Changes Happening in 2026

Your COLA will increase in 2026, but other factors could reduce your monthly benefit.

By Lee Huffman

Edited by Andrea Basse

Updated Jan. 14, 2026

Most retirees watch for the annual cost-of-living adjustment (COLA) to figure out how much their retirement benefits will increase each month. But focusing only on the COLA can cause you to miss other important updates that impact how you can maximize your senior benefits. In 2026, several lesser-known Social Security changes will affect benefit taxation, work rules, Medicare premiums, and administrative access. Here's a clear breakdown of the four big Social Security changes and why they matter to you.

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Higher earnings limits for working retirees

For retirees who collect benefits before reaching full retirement age and continue working, the earnings limit is just as important as the COLA. Each year, the Social Security Administration adjusts how much you can earn before benefits are temporarily withheld.

In 2026, this limit increased from $23,400 to $24,480 for retirees ages 62 to 66. In the year you turn 67 (full retirement age), the earnings limit increased from $62,160 to $65,160.

What's changing:

Higher annual earnings thresholds before benefit reductions apply
A separate, more generous limit for the year you reach full retirement age

Who's most affected:

Semi-retired workers
Early claimers supplementing income with part-time work

Why it matters:

If you earn above the limit, Social Security withholds $1 in benefits for every $2 earned over the threshold (or $1 for every $3 in the year you reach full retirement age. While withheld benefits aren't lost forever, the timing of payments can affect monthly cash flow.

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Medicare Part B Premiums continue to shape net benefits

Many retirees are surprised to learn that their Social Security "raise" disappears due to rising Medicare premiums. In 2026, Medicare Part B premiums are expected to increase again, reflecting higher healthcare costs and program expenses.

What's changing:

Higher standard Part B premiums
Potential increases in income-related surcharges (IRMAA)

Who's most affected:

Retirees with higher modified adjusted gross income
New retirees enrolling in Medicare for the first time

Why it matters:

Part B premiums are deducted directly from Social Security checks. Even with a higher monthly income from COLA, Medicare premium increases can reduce your net raise, or eliminate it altogether.

Social Security taxation thresholds remain frozen

One of the most overlooked issues in retirement income planning is benefit taxation. These limits determine how much of your Social Security benefits can be taxed when you have other sources of income. Examples of additional income that seniors may have include pensions, investments, rental properties, part-time work, or a second career.

What's changing:

The income thresholds that determine whether Social Security benefits are taxed remain unchanged in 2026
These thresholds have not been indexed for inflation since the 1980s

Who's most affected:

Middle-income retirees
Couples with combined income from Social Security, pensions, and withdrawals

Why it matters:

As monthly Social Security benefits rise with inflation, more retirees find themselves paying federal taxes on up to 85% of their benefits. Paying taxes on a higher percentage of their benefits hurts retiree budgets. Living on a fixed income makes it harder to pay for the rising cost of medical care, utilities, groceries, and other necessary expenses.

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Continued shift toward online and automated services

Administrative access may not sound exciting, but it affects nearly every retiree. The Social Security Administration is reducing staffing levels, reducing hours, and closing field offices. It continues to push online services in 2026 to reduce demand for in-person visits and cut costs for staffing and rent.

What's changing:

Expanded use of online accounts
Increased reliance on automated verification and digital communication

Who's most affected:

Retirees without reliable internet access
Those who prefer in-person or phone support

Why it matters:

Managing benefits, changing direct deposit, or resolving issues increasingly requires seniors to have access to a computer or mobile device with internet access. The retiree also needs to get comfortable accessing and navigating these online systems that are often not very user-friendly. Planning ahead or asking for help from a tech-savvy friend or family member can reduce frustration later.

COLA still matters, but it's only one piece of your retirement

Yes, the COLA will still increase your monthly check in 2026. However, focusing on the percentage increase can be misleading and leave you disappointed.

Why context matters:

Higher earnings limits may allow more income flexibility
Medicare premiums can offset benefit increases
Frozen tax thresholds can reduce take-home income

The real impact of Social Security changes depends on how these factors interact—not just the headline COLA number.

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Bottom line

Social Security in 2026 isn't just about a bigger monthly check. Earnings rules, Medicare premiums, taxation, and service access all play a role in determining how your benefits change each year. By understanding the full set of changes, retirees and future retirees can better anticipate how their income is affected and avoid money mistakes that can risk their retirement. Staying informed is one of the most effective ways to make the most of Social Security benefits.

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