Between tariffs, an affordability crisis, and basic fast-food meals crossing a $15 threshold, 2025 wasn’t exactly gentle on people’s wallets. As the year wraps up, 2026 is set to bring several big updates to Social Security that will affect anyone already collecting benefits or planning to start soon.
Here are four Social Security changes you need to know about for 2026.
Cost-of-Living Adjustment Increases to 2.8%
Starting January 2026, around 75 million Americans will receive a $56 increase in monthly Social Security benefits. The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for the upcoming year, a slight uptick from the 2.5% raise the year before.
The increase is meant to assist SS recipients — including retirees, Supplemental Security Income beneficiaries, and disability recipients — amid an ongoing affordability crisis and rising costs for health care, groceries, and housing.
But if you ask the recipients, the increase is just a drop in the bucket.
“Great news, I can finally upgrade to better cat food,” said one Redditor regarding the news.
“My wife and I will net a whopping $56 together a month after that SS raise and then deduct $21 more each for Part B. I’m so excited. Maybe we can buy an extra book of stamps or two and a soda each,” wrote another.
An AARP survey released in September found that 77% of older adults believe even a 3% increase would not be enough to keep up with rising costs.
Since 2000, the average COLA has been about 2.6%, though recent years saw larger spikes — 5.9% in 2022 and 8.7% in 2023 — due to post-pandemic inflation.
Medicare Part B Premiums Increase
The main reason most Social Security recipients are not jumping for joy over the COLA increase is due to another Social Security update set to take effect next year.
Medicare Part B is getting more expensive in 2026, with premiums jumping 9.7% to $202.90 a month. It’s the first time premiums have cleared the $200 mark; meanwhile, the deductible is rising to $283. The increase tracks with steadily climbing health care costs, more treatment happening outside hospitals, and higher overall spending tied to Medicare Advantage plans. Since Part B premiums usually come straight out of Social Security checks, that hike takes a noticeable bite out of next year’s 2.8% COLA, leaving the average retiree with something closer to a 1.9% raise — and closer to 1% for lower-income seniors.
While a crackdown on costly medical bandages prevented an even larger hike, many seniors — especially those with lower incomes — will feel the squeeze, as millions already spend a sizable share of their income on Medicare premiums. Higher earners will face additional monthly surcharges starting in 2026.
Social Security Wage Base Increases
The income cap for Social Security payroll taxes is going up in 2026, rising to $184,500. That’s up from $176,100 in 2025 — a 4.77% increase. Workers will keep paying the usual 6.2% Social Security tax on earnings up to the cap, with employers matching it, while self-employed workers are on the hook for the full 12.4%. Once income goes past that limit, the Social Security tax drops off, but Medicare taxes don’t — there’s no cap there, including the extra 0.9% surtax for individuals earning over $200,000 and couples over $250,000. The higher cap tracks overall wage growth and comes from the Social Security Administration’s annual adjustment.
Work Credit Earnings Requirement Increases
In 2026, workers earn one Social Security credit for every $1,890 in earnings, up from $1,810 in 2025. A maximum of four credits can still be earned per year, requiring at least $7,560 in annual earnings. Workers must accumulate 40 credits over their lifetime to qualify for retirement benefits.
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