Retirement Social Security

You Have Less Than 2 Months to Prepare for 8 Big Social Security Changes

Prepare for 2026 Social Security changes now.

By Katy Willis

Edited by Laura Hohenstein

Updated Nov. 4, 2025

The 2.8% 2026 cost-of-living adjustment (COLA) has been officially posted, and that means you've got less than two months left before it kicks in. Along with the COLA increase, the Social Security Administration also announced other changes, including the taxable wage base, earnings test limits, and more.

Before your January Social Security payment, which is when you'll see the first increased COLA payment, you need to prepare for all of these big changes. If you want to maximize your senior benefits, preparing for these changes is the smartest option.

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The 2026 COLA is 2.8%

Social Security and Supplemental Security Income (SSI) beneficiaries receive a 2.8% COLA for 2026, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from Q3 2024 to Q3 2025. This takes the average retired worker's gross benefit from $2,015 to $2,071 from January 2026. That's around $56 more per month.

Note that the first increased SSI payments will go out in December 2025 because of the Social Security Administration's payment calendar. Log in to your my Social Security account and review your 2026 notice to verify your actual gross benefit amount for the new year.

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Taxable wage threshold increases to $184,500

For workers and those who are self-employed, the maximum taxable earnings paid into the old-age, survivors, and disability insurance (OASDI) fund increases to $184,500 for 2026. The OASDI tax rate stays at 6.2% each for employees and employers, or 12.4% for those self-employed.

If you or your spouse still works, adjust withholding or quarterly estimates for the higher cap. This is especially important if one or both of you are self-employed and need to pay both portions.

Retirement earnings test limits rise

If you claim your benefit before full retirement age (FRA) and keep working, then you'll need to take the earnings test into account when you're budgeting. In 2026, the exempt threshold has risen to $24,480 per year, or $2,040 per month. Apart from in the year you retire, where the threshold has risen to $65,160, or $5,430 per month.

If you exceed these amounts, the SSA withholds $1 for every $2 you earn and $1 for every $3 you earn in the year you reach FRA. If you're getting close to these thresholds, or you know you will be next year, plan the timing of bonuses or extra shifts carefully so you don't accidentally trigger withholdings that temporarily reduce your check.

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SSI federal benefit standard increases

The maximum federal SSI payment is increasing to $994 per month for eligible singles, and $1,491 per month for couples. The "essential person" amount is rising to $498 per month. It's important to note that these are the federal baselines, and any state supplements may not rise at the same rate or be offered at all.

If you're borderline on SSI eligibility, re-check after the new year. Especially if your income or resources are near the limits.

You'll need more earnings to bank a work credit in 2026

From January 2026, it'll take $1,890 of covered earnings to earn one work credit. This is an increase of $80 from the 2025 amount of $1,810. However, no matter how much you earn, you're only entitled to four credits per year.

If you fall short of the 40 credits you need to claim your Social Security retirement benefits, figure out the minimum part-time earnings and hours you need in 2026 to make up to four credits in the most efficient way possible.

Disability thresholds are higher

For 2026, substantial gainful activity (SGA) is set to rise to $1,690 per month for non-blind beneficiaries and $2,830 per month for blind beneficiaries. The Trial Work Period (TWP) amount will increase to $1,210 per month.

If you're returning to work under Social Security Disability Insurance (SSDI), coordinate with SSA on reporting to avoid overpayments. Make sure you record months that exceed the TWP threshold, as you only get 9 months within 60 months.

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Maximum benefit at FRA increases

The maximum monthly benefit for someone first claiming at full retirement age is increasing from $4,018 per month to $4,152 per month. However, remember that hitting that benefit amount is not the norm and requires very high lifetime earnings at or above the wage base for most of your 35 top-earning years.

If you haven't claimed yet, it's worth using the SSA's calculators to see how your benefit can change based on when you claim. For the most accurate estimates, sign in to your my Social Security account and use the calculators on your own earnings record. It's also a good opportunity to review that record and make sure there are no under-reported or missing years that will pull down your average earnings and therefore your benefit entitlement.

Primary Insurance Amount bend points changing

The SSA's primary insurance amount (PIA) formula utilizes "bend points" that are adjusted annually. The PIA is the actual benefit you receive from Social Security, while the bend points are wage benchmarks that help determine that benefit.

When calculating benefits, the SSA looks at a worker's Average Indexed Monthly Earnings (AIME) and divides that into three brackets using the bend points. You'll receive in the form of benefits 90% of the first bracket wages, 32% of the second bracket, and 15% for the third bracket.

For 2026, the first bracket or bend point is increasing to $1,286 for those turning 62 and first becoming eligible for benefits. That means you can receive 90% of $1,286 dollars earned in benefits. The next bend point is increasing to $7,749, meaning you'll receive 32% of wages earned between $1,286 and $7,749. After that, you'll receive 15% of any wages earned greater than $7,749.

Bottom line

All of these official Social Security changes affect your baseline benefit, your deductions, your budget, and how much actually reaches your bank account. Even if you're already retired and not working, the COLA, SSI standard, and Medicare deductions determine your net deposit.

For workers, the higher wage base and earnings test limits change your 2026 cash flow and withholding. Plus, for new claimants in 2026, the bend points shape your starting benefit.

With only two months left to adjust to these changes, it's important that you act now. Sign in to your my Social Security account and check to see if your earnings record is accurate and to view your updated benefit amounts and deductions. Review your retirement plan and your budget to make sure you keep as much of your benefit as possible.

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