Millions of Americans monitor Social Security updates throughout the year. Since many retirees significantly depend on these monthly benefits for their income, it is typical for seniors to seek information regarding their forthcoming cost-of-living adjustments, commonly referred to as COLAs.
In 2025, recipients of Social Security had to wait longer than normal to learn the amount of their COLA for 2026. The Social Security Administration was originally scheduled to announce the official figure on October 15. However, the government experienced a shutdown.
The official notification of the Cost of Living Adjustment (COLA) was delayed due to the closure. Seniors were not informed about their forthcoming 2.8% COLA for 2026 until October 24.
Social Security to see big changes in 2026
However, although the COLA for 2026 has dominated discussions regarding Social Security in recent months, it is not the sole modification anticipated for the program in the upcoming year. Below are four additional major changes that warrant your attention, including those who have not yet begun receiving monthly benefits.
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Limits of Social Security’s earnings test set to increase
If you do not work while receiving benefits, you may not be aware of Social Security’s earnings test. However, for people who receive benefits prior to reaching their full retirement age, there is a cap on the income they can earn before their benefits may be withheld.
In 2026, these earnings-test limits will rise, enabling seniors to earn a greater income before facing benefit withholding. If you are employed and receiving Social Security in 2026, you will be able to earn up to $24,480 without having any benefits withheld, an increase from $23,400 in 2025. After this threshold, $1 in Social Security will be withheld for every $2 earned, The Motley Fool reported.
Additionally, if you are approaching full retirement age at any point in 2026, the earnings-test limit will be significantly higher next year, increasing from $62,160 to $65,160. Beyond this limit, $1 in Social Security will be withheld for every $3 earned.
It is important to note that any withheld benefits will be compensated through larger monthly payments once you reach full retirement age. However, it is crucial to remember that claiming Social Security benefits before reaching full retirement age will result in a permanent reduction of monthly benefits, irrespective of your employment status.
Maximum monthly benefit to see surge
Social Security establishes a maximum monthly benefit that retirees may receive. This year, the highest benefit available at full retirement age is $4,018. In the following year, it will rise to $4,152.
However, if you plan to enroll in Social Security at age 70 in 2026, the maximum benefit you can receive will be $5,251. It is important to note that most recipients of Social Security do not approach the program’s maximum monthly benefit.
Wage cap for social security to witness increase once again
Social Security primarily derives its funding from payroll taxes. However, there is a limit to the amount of income that the program taxes each year.
The wage cap for Social Security typically increases in accordance with inflation annually. In 2025, earnings exceeding $176,100 will not be taxed. In the upcoming year, this cap will rise to $184,500, establishing the threshold for paying Social Security taxes on your earnings, as per The Motley Fool. It is evident that this adjustment will only impact individuals with high salaries.
Earning Social Security work credits to become more challenging
A common misconception regarding Social Security is that individuals qualify for retirement benefits upon reaching the age of 62. However, these benefits can only be accessed if one has accumulated 40 work credits throughout their lifetime.
The amount of a Social Security work credit is set to increase from $1,810 to $1,890 in 2026. If you are working part-time and wish to obtain the maximum number of credits available in the upcoming year, which is four, you may need to adjust your working hours based on your earnings.
Although the primary change in Social Security that is being discussed for 2026 is the anticipated cost-of-living adjustment (COLA), it is evident that several other significant developments are also occurring.