What's Changing in January 2026
Social Security's cost-of-living adjustment (COLA) for 2026 will be announced in October 2025. This percentage increase affects the monthly payment amount for retirees, people receiving disability benefits, and survivors. The exact figure depends on inflation data from the third quarter of 2025, so the number is not yet known.
Beyond the COLA announcement, several other changes take effect in January 2026. The earnings limit for people who claim Social Security before full retirement age will increase. The maximum amount you can earn without losing benefits will rise, though the exact dollar amount depends on final 2025 wage data. Additionally, the bend points used to calculate initial benefit amounts change each year, which affects how much someone receives when they first claim.
Medicare premiums, deductibles, and out-of-pocket limits also adjust annually on January 1. If you receive Social Security and are enrolled in Medicare Part B, your premium may be deducted directly from your benefit check. These changes are separate from Social Security itself but affect what you actually receive each month.
Key Takeaways
- The 2026 COLA percentage will be announced in October 2025 and determines how much higher your monthly Social Security payment will be starting in January.
- The earnings limit for people under full retirement age increases each year; in 2026 you can earn more before losing benefits, but the exact amount is not yet set.
- Bend points used to calculate new benefit amounts change annually, affecting how much someone receives when they first claim in 2026.
- Medicare premiums and deductibles also change on January 1, 2026, which may reduce the actual amount you receive if Part B is deducted from your check.
- The full retirement age for people born in 1960 or later remains 67, but this continues to phase in for older birth years.
How the Cost-of-Living Adjustment Works
The COLA is a percentage increase applied to all Social Security payments to account for inflation. It is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July, August, and September of the prior year. If inflation is low or prices fall, the COLA can be zero or very small.
The announcement happens in mid-October each year. Social Security mails a notice to all beneficiaries showing their new payment amount effective January 1. If you receive your benefit by direct deposit, the new amount appears in your account on the third day of January (or the first business day after if January 3 falls on a weekend).
The COLA applies to retirement benefits, survivor benefits, and Supplemental Security Income (SSI). It does not apply to Medicare premiums in the same way—Medicare premiums are set separately by the Centers for Medicare & Medicaid Services and may increase or decrease independently of the COLA.
Earnings Limits and Work in 2026
If you claim Social Security before reaching full retirement age, you can earn a certain amount each year without losing benefits. For every two dollars you earn above that limit, Social Security withholds one dollar of your benefit. The earnings limit increases each year based on wage growth data.
In 2025, the limit is $23,400 per year. The 2026 limit will be higher, but the exact figure is not published until October 2025. This limit applies only to earnings from work—it does not include investment income, pensions, or other non-work income.
The year you reach full retirement age has a different rule. From January through the month before you turn full retirement age, a higher earnings limit applies (currently around $62,000, but this also increases annually). Once you reach full retirement age, there is no earnings limit at all, and you can work and earn as much as you want without losing benefits.
Bend Points and Initial Benefit Calculations
Social Security calculates your benefit using a formula with three bend points. These are dollar amounts that change each year based on wage growth. The bend points determine what percentage of your average earnings becomes your benefit—the formula pays a higher percentage on lower earnings and a lower percentage on higher earnings.
In 2025, the bend points are $1,174 and $7,078. In 2026, these numbers will increase, but the exact amounts are not known until October 2025. If you claim Social Security in 2026, your initial benefit amount will be calculated using the 2026 bend points, not the 2025 ones.
This matters most if you are close to claiming age. Someone born in early 1960 who claims in January 2026 will use 2026 bend points. Someone born in late 1960 who waits until later in 2026 will also use 2026 bend points for that entire year. The bend points do not change mid-year.
Medicare Premium Changes for 2026
Medicare Part B premiums, deductibles, and out-of-pocket maximums all adjust on January 1 each year. In 2025, the Part B premium is $174.70 per month for most people. The 2026 premium will be higher, but the amount is not announced until November 2025.
If you are enrolled in Medicare Part B and receive Social Security, your premium is usually deducted directly from your benefit check. This means your actual take-home payment may be lower even if your COLA increase is positive. For example, if your COLA increase is 2.5 percent but your Medicare Part B premium increases by 3 percent, your net payment could decrease.
People with higher incomes pay higher Medicare premiums through Income-Related Monthly Adjustment Amounts (IRMAA). These thresholds also change annually. If your income crosses a new threshold in 2026, your premium could increase significantly. Social Security and Medicare will notify you of any changes by December 2025.
Full Retirement Age and Claiming Decisions
Full retirement age is the age at which you receive 100 percent of your calculated benefit. For people born in 1960 or later, full retirement age is 67. This age does not change in 2026—it remains 67 for anyone born in 1960 or later.
If you claim before full retirement age, your benefit is permanently reduced. The reduction is about 6.7 percent per year before full retirement age, so claiming at 62 instead of 67 means a roughly 30 percent lower benefit for life. If you delay claiming past full retirement age, your benefit increases by about 8 percent per year until age 70.
The 2026 bend points and earnings limits do not change when full retirement age takes effect—they are separate annual adjustments. However, they do affect how much you receive if you claim in 2026, so it is worth understanding both when you plan to claim.
How to Find Out Your Specific 2026 Changes
Social Security sends a notice to every beneficiary in December showing the new payment amount for January. This notice includes the COLA percentage, your new monthly amount, and any changes to Medicare deductions. If you do not receive a notice by mid-December, you can create a my Social Security account at ssa.gov to view your information online.
If you have not yet claimed Social Security, you can use the Retirement Estimator tool on ssa.gov to see a rough estimate of your benefit at different claiming ages. This tool uses your actual earnings record and shows estimates based on current bend points and formulas. After October 2025, when the 2026 bend points are announced, the estimates will update to reflect 2026 calculations.
For questions about your specific situation—such as how the earnings limit affects you, or whether your Medicare premium will change—you can call Social Security at 1-800-772-1213. Representatives can explain how the 2026 changes apply to your case and answer questions about your benefit.
Frequently Asked Questions
When will I know my exact 2026 Social Security payment amount?
Social Security mails a notice to all beneficiaries in December 2025 showing your new payment amount starting January 1, 2026. The notice includes the COLA percentage and your new monthly benefit. If you have a my Social Security account, you can view this information online before the paper notice arrives.
Will my Medicare premium increase reduce my Social Security raise?
Possibly. If your Medicare Part B premium increases more than your COLA increase, your net payment (the amount you actually receive after the premium is deducted) could be lower. Social Security calculates this and notifies you by December 2025 if your payment will decrease.
Does the earnings limit apply to retirement income or investment income?
No. The earnings limit applies only to income from work—wages, self-employment income, and bonuses. It does not apply to pensions, investment income, rental income, or other non-work sources. Only work earnings count toward the limit.
If I claim Social Security in 2026, which bend points are used?
The 2026 bend points are used for anyone who claims in 2026, regardless of the month. These bend points are announced in October 2025. If you claim in January 2026, your benefit is calculated using 2026 bend points, not 2025 ones.
What if I disagree with my 2026 payment amount?
You can contact Social Security to ask how your payment was calculated. Representatives can explain the COLA, bend points, and any deductions applied. If you believe there is an error in your earnings record or benefit calculation, you can request a detailed explanation and file a dispute if needed.