Retirement Social Security

3 Crucial Social Security Numbers Just Changed - Here's What You Should Know

How major 2026 Social Security Changes impact you.

By Katy Willis

Edited by Laura Hohenstein

Updated Nov. 20, 2025

If you're collecting benefits now or planning to soon, you need to know how changes to Social Security's most important numbers affect you. These key figures can impact the size of your benefit, your tax obligations, and how much of your work earnings count toward future checks.

With the cost-of-living adjustment (COLA), taxable wage base, and the maximum monthly retirement benefit all increasing in January, now is a good time to assess your situation to make sure you're making the most of your senior benefit.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

See what a 2.8% COLA really does to your check

Every January, your Social Security benefits adjust for inflation through the cost-of-living adjustment (COLA). For 2026, that's a 2.8% increase based on the third-quarter inflation rate per the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

For the average retired worker, that takes their gross benefit amount from $2,015 to $2,071, or $56 more per month. If you receive Supplemental Security Income (SSI), you get the same 2.8% increase, but it shows up a little earlier, on December 31, 2025, because January 1st is a federal holiday.

These are just the average figures. To see your personal gross benefit amount, check your COLA notice from late November in your "my Social Security" account. Don't forget to also look at your net amount, as this is the actual figure that will land in your bank account after Medicare premiums and any withholding.

It's true that with such a modest increase, you may not notice much difference as the cost of everything keeps rising. However, it does provide a small cushion to help protect your purchasing power.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Know how the wage cap affects your benefit

The second significant change for 2026 is the taxable wage base. This is the maximum amount of earnings that can be subject to Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) tax. For 2026, that's jumping from $176,100 to $184,500.

In practical terms, this means that if you're an employee, you pay Social Security tax on wages up to $184,500. So, if you earn at or above that level annually, you'd pay a total of $11,439 in OASDI tax for the year. Your employer pays the same amount. If you're self-employed, you have to cover the full 12.4% yourself on net earnings up to the same cap.

Only earnings up to that cap contribute to building your future benefit. Earnings above it don't raise your Social Security check because they're not taxed for OASDI, so they don't go into the benefit formula.

If you have a few lower-income years in your 35-year earnings record, if you're able to earn close to that cap before FRA, it could be worth doing so before you file, as even one or two years of higher earnings can have a significant impact on your base benefit.

Understand the new maximum Social Security benefit

The third significant change, which often makes headlines, is that the maximum monthly Social Security benefit at full retirement age (FRA) has increased slightly. In 2025, the maximum a new retiree could receive in Social Security was $4,018. Starting in January 2026, new retirees at FRA can receive a maximum of $4,152 per month.

However, remember that very few people achieve this level of benefit at full retirement age, because qualifying for it is extremely tough. You'd need to earn the taxable maximum or more for all of your 35-year record. It's close to double what the typical retiree receives. The average worker who retires at FRA can expect $2,071 per month in 2026.

If you check your earnings statement and see that you have some lower-earning years in there, and you have the ability to continue earning at a higher level for a year or two, it could be worth it. Just replacing a couple of those low numbers can have a substantial impact on your overall benefit, even if it won't get you close to the maximum amount.

You may also want to take a look at how much you'll receive if you decide to file early, at FRA, or late. Filing early can cut your monthly check by around 30% based on what you would've received at FRA. But if you delay until you reach 70, you'll earn delayed retirement credits (DRCs), which boost your monthly check by around 24% (or 8% per year from FRA until 70).

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Bottom line

For 2026, three core Social Security numbers have shifted. COLA is set at 2.8%, the taxable wage base rose to $184,500, and the full retirement age maximum benefit increased to $4,152 per month. These three changes shape how much you pay in, how much you can expect to receive, and how far your senior benefits will stretch.

Before the changes come into effect, it's a good idea to check your "my Social Security" account and take another look at your retirement plan. Make sure all your earnings are accounted for and ask for corrections if there are any discrepancies. Look at your estimated benefit amount for different filing ages, and figure out when the best time is for claiming your benefit, based on your financial needs and health.

More from FinanceBuzz:

Reach Your Savings Goals Faster

5.0

2025 award winner Best Checking and Savings Combo

SoFi Checking and Savings Benefits

Limited-Time Offer: Earn up to a $300 bonus and up to 4.30% APY on Savings (3.60% APY¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/" >sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.² Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.
No account, overdraft, or monthly fees³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a>
Get your paycheck up to two days early with direct deposit⁴ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Access additional FDIC insurance up to $3 million⁵ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

5.0

Open an account with SoFi® here