The Social Security Administration has announced its official updates for 2026, and several changes will directly affect your retirement.
Cost-of-living adjustment
The Social Security Administration has announced a 2.8% cost-of-living adjustment for 2026. This translates to approximately $55 more per month, starting in January 2026. Unfortunately, the increase may be offset by rising Medicare Part B premiums, which are expected to increase to approximately $206.50 per month in 2026, up from $185 in 2025.
Full retirement age becomes 67
The full retirement age officially changes to 67 for people born in 1960 or later. This means that if you turn 62 in 2026, you’ll need to wait five more years to claim your full Social Security benefits.
Earnings test limits rise for working retirees
If you’re working while collecting benefits, but are younger than your full retirement age, the earnings test limits how much you can earn without affecting your Social Security check. The earnings test rules change significantly in the year you reach full retirement. For 2026, if you’re under your full retirement age for the entire year, you can earn up to $24,480 before triggering benefit reductions. Beyond that, Social Security withholds $1 for every $2 you earn over the limit. In the year you reach full retirement age, the earning limit is $62,160, and the penalty drops to $1 for every $3 you earn over the limit. Once you hit full retirement age, there’s no earnings cap.
Verify Your Earnings Record
Set up your Social Security account at SSA.gov and review your wage history. Mistakes can permanently reduce your benefit amount. Correct any errors with the SSA through an online support form.
If you would like to schedule a consultation to plan for the 2026 changes, please call our office at (631) 585-9698.
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