What's changing in Social Security in 2026

In 2026, two significant changes take effect for Social Security: the full retirement age increases to 66 and 10 months for people born in 1960, and the earnings test for people who claim before full retirement age becomes stricter. The earnings test limits how much money you can earn from work without losing part of your benefit — in 2026, you lose $1 in benefits for every $3 you earn above the limit, rather than the current $1 for every $2. These changes affect when you can claim without a reduction and how much you keep if you work while receiving benefits.

The cost-of-living adjustment (COLA) for 2026 has not yet been announced — it is calculated each October based on inflation data from the previous months and takes effect in January. The 2025 COLA was 3.2 percent, but the 2026 figure will depend on economic conditions between now and October 2025.

Key Takeaways

  • Full retirement age moves to 66 and 10 months in 2026 for people born in 1960, meaning claiming at 62 will result in a larger permanent reduction to your benefit.
  • The earnings test changes so you lose $1 in benefits for every $3 you earn above the limit, making it less costly to work while claiming early.
  • The exact cost-of-living adjustment for 2026 will not be known until October 2025, when the Social Security Administration announces it.
  • People born in 1961 and later will see full retirement age continue to increase by two months per birth year until it reaches 67 for those born in 1960 or later.

How the full retirement age increase affects your benefit amount

Full retirement age is the age at which you can claim your full Social Security benefit without any reduction. For people born in 1960, that age becomes 66 and 10 months starting in 2026. If you were born in 1961, your full retirement age is 67. This schedule continues — each birth year after 1960 adds two months to the full retirement age, until it reaches 67 for everyone born in 1960 or later.

If you claim before your full retirement age, your benefit is reduced permanently. The earlier you claim, the larger the reduction. For someone born in 1960 who claims at 62, the reduction is about 30 percent of what they would receive at their full retirement age of 66 and 10 months. This reduction stays in place for the rest of your life, even after you reach full retirement age. Delaying your claim past full retirement age increases your benefit by about 8 percent per year until age 70.

What the earnings test change means if you work while claiming

The earnings test applies only if you claim Social Security before reaching your full retirement age and you continue to work. It does not apply once you reach full retirement age, no matter how much you earn. In 2026, the earnings limit is expected to be around $23,400 (this figure adjusts annually for wage growth, so the exact 2026 amount will be announced in October 2025).

Under the new rule starting in 2026, you lose $1 in benefits for every $3 you earn above the limit. This is less harsh than the current rule, where you lose $1 for every $2 earned above the limit. For example, if the limit is $23,400 and you earn $26,400, you are $3,000 over the limit. Under the old rule, you would lose $1,500 in benefits. Under the new rule, you lose $1,000. This change makes it more affordable to work part-time or in a new job while receiving early benefits.

How to plan your claiming decision around 2026 changes

If you are considering claiming Social Security in 2025 or 2026, the full retirement age increase means your reduction will be larger if you claim at 62 in 2026 than it would have been in 2025. Someone born in 1960 who claims at 62 in 2025 receives a reduction of about 29 percent; the same person claiming at 62 in 2026 receives a reduction of about 30 percent. The difference is small year to year, but it compounds over your lifetime.

If you plan to work while claiming early, the earnings test change in 2026 works in your favor — you keep more of your benefit for each dollar you earn. This might make claiming at 62 or 63 more attractive if you need income now and expect to work for several more years. However, your total lifetime benefit will still be higher if you delay claiming, because you receive fewer monthly payments but each payment is larger.

When the 2026 cost-of-living adjustment will be announced

The Social Security Administration announces the annual cost-of-living adjustment in October each year. For 2026, this announcement will happen in October 2025. The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of that year. If inflation during those months is higher than the previous year, benefits increase; if inflation is lower, the increase is smaller or there is no increase at all.

The 2026 COLA will affect all people receiving Social Security benefits, including retirees, disabled workers, and survivors. It also affects the earnings test limit and the maximum benefit amount. You do not need to do anything to receive the COLA — it is applied automatically to your benefit in January 2026.

Other Social Security rules that do not change in 2026

The age at which you can claim reduced benefits remains 62. The age at which the earnings test stops applying remains your full retirement age. The maximum age to delay claiming and earn delayed retirement credits remains 70. Spousal and survivor benefits continue to follow the same rules, though the amounts adjust for COLA.

Medicare enrollment ages and rules do not change in 2026, though they are coordinated with Social Security claiming. If you claim Social Security at 62, you can still enroll in Medicare at 65 if you are not yet receiving benefits based on disability. The Supplemental Security Income (SSI) program, which is separate from Social Security retirement and disability benefits, continues under its current rules, though the federal benefit rate increases with COLA.

Frequently Asked Questions

If I was born in 1960, can I still claim at 62 in 2026?

Yes, you can claim at 62 in any year. However, your benefit will be reduced by about 30 percent because your full retirement age is now 66 and 10 months instead of 66 and 8 months. This reduction is permanent and applies for the rest of your life.

Does the earnings test change help me if I am already receiving benefits?

Only if you claimed before your full retirement age and you are still working. If you have already reached your full retirement age, the earnings test does not apply to you and never will. If you claimed early and work, the new rule means you keep more of your benefit for each dollar earned starting in 2026.

Will my benefit amount go up in 2026?

Yes, your benefit will increase by the 2026 cost-of-living adjustment, which will be announced in October 2025. The exact percentage depends on inflation data from July through September 2025. This increase applies to all beneficiaries automatically in January 2026.

What if I delay claiming past 2026 — do I get a bigger benefit?

Yes. For every year you delay claiming past your full retirement age, your benefit increases by about 8 percent per year until age 70. If you were born in 1960 and delay from age 66 and 10 months to age 70, your benefit would be roughly 24 percent higher than if you claimed at full retirement age.

Does the full retirement age increase affect my Medicare enrollment?

No. You can enroll in Medicare at 65 regardless of your full retirement age for Social Security. Your Social Security claiming age and your Medicare enrollment age are separate. You should enroll in Medicare at 65 even if you do not claim Social Security until later.