4 Social Security Changes That Are Already Affecting Retirees This Year
Just like your taxes, changes to Social Security can happen quickly. In the best-case scenarios, this means seeing your payments go up. But for people who have left the workforce, even the most subtle alteration can have a profound impact. So, how does everything look for 2026? Read on for the major Social Security changes that are already affecting retirees this year.
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1. The cost-of-living adjustment was likely insufficient.
The Social Security Administration (SSA) regularly reassesses what it pays out to Social Security recipients each month. Typically, these changes reflect changes in the economy, taking into account things like inflation that might necessitate sending out more money. This year was no different, with the SSA announcing a 2.8 percent increase as part of its cost-of-living adjustment (COLA).
However, the change might fall short of what’s necessary to help those who rely on the program. Some retirees are reporting that the COLA adjustment falls short of the actual requirements in the face of skyrocketing expenses and persistent inflation, Finance Buzz reports.
2. Increases in Medicare costs wipe out COLA increases.
Part of those cost-of-living increases could be hitting seniors where it hurts them most: Their health. That’s because in 2026, Medicare Plan B premiums have jumped 11.6 percent from last year, leaping to $206.50 per month from $180, according to the U.S. Centers for Medicare & Medicaid Services (CMS).
This could also impact higher earners. Those enrollees could see their Income-Related Monthly Adjustment Amount (IRMAA) rise anywhere from $83 to $496 above the set rate, according to SRTT.org. Advocates argue that drastic increases in monthly essential payments essentially wipe out the SSA’s COLA adjustments for the year.
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3. There are higher limits for working enrollees.
Of course, not everyone who gets a Social Security check has fully left the workforce. Those who’ve “soft retired” and continue with a consulting job or part-time work often straddle the two groups while incorporating their payments as part of their income.
However, those with such an arrangement may want to take note. As of 2026, there has been an increase in the income threshold, with the SSA now witholding $1 of benefits for every $2 earned above $24,480, The Motley Fool reports. In 2025, the base limit was $23,400.
Things also change when someone hits full retirement age at 65 (unless you were born in 1960 or later, in which case it’s 67). If that year is 2026 for you, the threshold jumps $65,160, in which case the SSA will withhold $3 of benefits for every $1 over the limit. This also represents a change from last year, increasing from $62,160, according to The Motley Fool.
4. A higher payroll tax cap could affect future benefits.
There’s more change in store for enrollees who are still working. This year, the government has adjusted the wage cap for taxable earnings, which will increase from $176,100 in 2025 to $184,500, according to the SSA. This ultimately means that anyone who earns this higher amount will see an impact on their paychecks that they might not have anticipated.