🧾 Six Social Security Changes Coming in 2026

Every fall, Social Security sets in motion the adjustments that shape retirement income for the following year.

And 2026 brings an especially meaningful set of changes — some routine, some historic.

Whether you’re already claiming benefits or planning your start date, understanding what’s ahead helps you avoid surprises and make better choices.

1. A New Cost-of-Living Adjustment (COLA)

Each October, the COLA is set based on third-quarter inflation readings (CPI-W).

Early estimates suggest the 2026 COLA could land in the 2–3% range — lower than the pandemic-era spikes, but still meaningful for fixed incomes.

Remember, the COLA applies to your gross Social Security benefit before Medicare premiums are deducted.

2. Full Retirement Age Finally Hits 67

If you were born in 1960 or later, your Full Retirement Age (FRA) will be 67 in 2026.

That’s the final step in the FRA increase that Congress set back in 1983. For those turning 62 in 2026, this means:

• Claiming early at 62 cuts your benefit by about 30% compared to FRA.

• Waiting until 70 boosts your benefit by a full 24% above FRA.

This shift locks in 67 as the FRA for all future retirees.

3. Higher Earnings Test Limits

If you claim Social Security before FRA and keep working, benefits are reduced once your earnings cross a threshold. That earnings test limit rises each year with inflation.

For 2026, expect a higher ceiling, giving working early retirees a bit more breathing room.

Remember, these withheld benefits aren’t lost forever — they’re credited back at FRA, but cash flow matters in the meantime.

4. A Bigger Taxable Wage Base

Social Security payroll taxes apply up to a maximum amount of earnings, known as the taxable wage base.

In 2025, it’s $183,000. In 2026, it will step higher again, pulling more wages into Social Security taxation and boosting the system’s revenue.

For high-earning feds, this means slightly bigger paycheck deductions — but also a higher earnings record for eventual benefits.

5. Income Brackets Affecting Medicare Premiums

While not technically part of Social Security, your Medicare premiums (Part B and Part D) are tied to your income, which is reported to SSA.

Rising thresholds in 2026 could mean fewer retirees are hit with IRMAA surcharges — or that you have a bit more room for Roth conversions or part-time income without crossing into a higher tier.

6. Ongoing Legislative Shifts

Finally, Congress has put Social Security under the spotlight.

With the Social Security Fairness Act already eliminating WEP/GPO starting in 2025, attention now turns to solvency debates.

By 2026, proposals to extend trust fund life may surface — from raising taxes to altering formulas. No single bill is final yet, but it’s a policy backdrop every retiree should follow.

The Bottom Line

For federal retirees, 2026 marks a milestone year for Social Security: the COLA keeps pace with inflation, FRA locks in at 67, wage bases and earnings tests shift, and legislative changes loom.

Together, these adjustments affect both your paycheck deductions today and your benefit decisions tomorrow.

Best,
—FWR