4 Things Every Retiree Must Know Before Claiming Social Security in 2026

Claiming Social Security can feel like a finish line. After decades of work, the checks finally begin, and it's easy to treat the decision as routine.

In 2026, though, the rules, limits, and tradeoffs behind that first check matter more than many retirees expect. Small details can quietly shape your income for years and reduce flexibility in your retirement plan if you overlook them.

Below are four issues every retiree should understand before claiming to avoid surprises and make a more informed choice.

Your filing age sets your monthly check for life

The age you choose to claim Social Security permanently sets your monthly check. You can file as early as 62, but starting that soon comes with a lasting tradeoff.

For retirees born in 1960 or later, full retirement age is 67. Someone entitled to $1,000 at 67 would receive about $700 by claiming at 62, a 30% reduction that applies for life, while waiting until 67 pays the full amount.

Delaying beyond full retirement age pushes the number higher. For most people retiring by 2026, benefits increase by about 8% per year you wait, up to age 70. Waiting from 67 to 70 would raise that same $1,000 benefit to roughly $1,240.

Once benefits start, there is no easy reset. An early claim locks in a lower amount, even if your circumstances change later, which is why this decision deserves careful thought before you file.

The 2026 cost-of-living adjustment (COLA)

Each January, Social Security adjusts benefits for inflation. For 2026, that COLA is 2.8%, which raises your monthly check compared to last year.

If your calculated benefit was $2,000, your January 2026 payment becomes about $2,056. That higher amount then carries through the rest of the year and becomes the base for future checks.

It helps to think of the COLA as a reset, not a bonus. The increase is built into your benefit, so the dollar amount you see in 2026 already reflects that 2.8% adjustment.

When you budget, you are starting from a higher baseline than in 2025. Planning around that number helps avoid overestimating what your check can cover and makes it easier to spot gaps early, before higher costs create pressure later in the year.

If you work, watch the 2026 earnings limits

If you claim Social Security before full retirement age and keep earning wages or self-employment income, excess earnings can reduce your checks during the year.

In 2026, the earnings rules depend on whether you have reached full retirement age:

• Under full retirement age all year: You can earn up to $24,480 before benefits are withheld at a rate of $1 for every $2 earned above the limit.
• Reaching full retirement age in 2026: You can earn up to $65,160 before your FRA month, with $1 withheld for every $3 earned above that amount.
• At or above full retirement age: The earnings limit no longer applies, and you can earn any amount without reducing your benefit.

Although withheld benefits are credited back after you reach full retirement age, missing checks in 2026 can still strain your cash flow. Estimate your 2026 earnings ahead of time and report them to Social Security to avoid surprises and make cash flow easier to manage during the year.

Deductions that lower your benefit

When you plan around Social Security, focus on what actually lands in your account. The gross benefit can look reassuring, but deductions often take a meaningful bite before you're paid. For most retirees, the biggest reductions come from Medicare and taxes.

In 2026, the standard Medicare Part B premium is $202.90 per month, and it's usually withheld directly from your Social Security check. Higher-income retirees may pay more due to IRMAA surcharges, which can push premiums well above the standard amount.

It's also important to remember that delaying Social Security past age 65 does not delay Medicare, as missing the Part B enrollment window can trigger a late-enrollment penalty.

Taxes can further reduce what you keep. Depending on your combined income, up to 85% of your Social Security benefit may be taxable. Single filers above $25,000 and married couples above $32,000 often owe tax on part of their benefit, with higher income triggering taxation on a larger share.

That's why it pays to look past the headline benefit. Reviewing expected Medicare premiums and tax exposure ahead of time helps you plan around the amount you will actually receive each month.

Bottom line

Social Security decisions often seem straightforward, but small missteps can have lasting effects. Taking time to understand the rules before you claim can help you avoid surprising retirement mistakes that are difficult to undo later.

Reviewing your numbers and timing ahead of time puts you in a stronger position. When you know how the rules apply to your situation, your benefits are easier to manage and far less likely to catch you off guard.

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