The 2026 Social Security changes you need to know about

Social Security's full retirement age is rising to 67 in 2026 for people born in 1960. This is the final step in a gradual increase that began in 1983 and affects when you can claim your full benefit without a reduction. If you were born in 1960 or later, your full retirement age is already 67 or will be. The cost-of-living adjustment (COLA) for 2026 has not yet been announced — it will be released in October 2025 — but it will determine how much your monthly benefit increases if you are already receiving payments.

Beyond the retirement age shift, the earnings test rules remain unchanged for 2026. If you claim before your full retirement age and continue working, Social Security will still reduce your benefit by $1 for every $2 you earn above the annual limit. The specific dollar limit changes each year based on wage growth, so you will want to confirm the 2026 figure closer to the year if you plan to work while collecting early.

Key Takeaways

  • Full retirement age reaches 67 in 2026 for people born in 1960, completing a gradual increase that started in 1983.
  • The 2026 cost-of-living adjustment will be announced in October 2025 and will determine benefit increases for current recipients.
  • Claiming before your full retirement age still triggers an earnings test if you work, reducing your benefit by $1 for every $2 earned above the annual limit.
  • Medicare premiums and deductibles for 2026 will be announced in the fall of 2025 and may affect your overall retirement income.

How the full retirement age increase affects your claiming decision

The full retirement age of 67 means you can claim your full benefit without any reduction starting at that age. If you claim at 62, your benefit will be permanently reduced by roughly 30 percent. If you delay until 70, your benefit increases by roughly 8 percent per year, meaning a 24 percent boost over the three years you wait past 67.

This change does not affect when you can start claiming — you can still file at 62 if you choose. What it changes is the age at which your benefit reaches its full amount. For people born in 1960, that age is now 67 instead of 66 and 10 months. If you were born in 1959 or earlier, your full retirement age is already set and will not change.

The decision of when to claim depends on your health, family history, and whether you plan to work. There is no single "right" age — it is a personal calculation based on your circumstances. Someone who expects a long retirement may come out ahead by waiting; someone with health concerns may prefer to claim earlier and receive benefits sooner.

What the 2026 cost-of-living adjustment means for your benefit

The COLA is the annual percentage increase applied to Social Security benefits to account for inflation. It is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and is announced each October for the following year. The 2025 COLA was 3.2 percent; the 2026 figure will depend on inflation between July 2024 and June 2025.

If you are already receiving Social Security, your benefit will increase by whatever percentage the 2026 COLA sets. If you have not yet claimed, the COLA does not directly affect you — your benefit amount is calculated based on your earnings record and the age at which you claim. However, a higher COLA in prior years means the benefit you eventually receive will be higher, because your Primary Insurance Amount (the benefit calculated at full retirement age) is based on your 35 highest-earning years adjusted for wage growth.

The COLA announcement typically comes in mid-October and takes effect in January. If you receive Social Security, you will see the increase reflected in your January payment.

Earnings test limits for 2026

If you claim Social Security before your full retirement age and continue working, the earnings test applies. For 2026, the specific dollar limit has not yet been announced, but it typically increases each year. In 2025, the limit was $23,400 per year. Once you reach your full retirement age, the earnings test no longer applies, and you can earn any amount without affecting your benefit.

The earnings test only counts wages from employment — it does not count investment income, pensions, or other retirement income. If you are self-employed, it counts net earnings from self-employment. The reduction is substantial: Social Security withholds $1 in benefits for every $2 you earn above the limit.

If you are considering claiming early and continuing to work, factor in the earnings test when you do the math on whether early claiming makes sense for you. In some cases, waiting until your full retirement age allows you to work without penalty and claim a higher benefit.

Medicare premiums and deductibles for 2026

While not technically a Social Security change, Medicare premiums and deductibles for 2026 will be announced in the fall of 2025 and will affect your overall retirement income. Most people on Social Security have their Medicare Part B premium deducted directly from their benefit payment, so a premium increase reduces the amount you actually receive.

Medicare Part A (hospital insurance) is typically free for people 65 and older who have worked 10 years or more. Part B (medical insurance) has a monthly premium that changes each year. Part D (prescription drug coverage) premiums also vary by plan and year. These costs are separate from Social Security but are closely tied to your retirement budget.

If you are approaching 65 and planning to claim Social Security, understanding your Medicare costs will help you plan your overall retirement income more accurately.

No major changes to spousal or survivor benefits in 2026

Spousal benefits and survivor benefits follow the same rules in 2026 as they do now. A spouse can claim up to 50 percent of the primary earner's full retirement age benefit (or less if they claim before their own full retirement age). Survivor benefits — paid to a widow, widower, or dependent children — are calculated as a percentage of the worker's Primary Insurance Amount.

The full retirement age increase does affect spousal and survivor benefits indirectly, because those benefits are calculated as a percentage of the primary earner's full retirement age amount. If the primary earner delays claiming, the full retirement age benefit is higher, which means the spousal or survivor benefit is also higher.

If you are receiving spousal or survivor benefits, your 2026 benefit will increase by the same COLA percentage as all other beneficiaries.

How to prepare for these changes

Start by understanding your own full retirement age. If you were born in 1960, it is 67. If you were born before 1960, it is lower. You can find this information on your Social Security statement, which you can view anytime at ssa.gov by creating a my Social Security account.

Next, think about when you want to claim. The full retirement age increase does not change when you can claim (still 62), but it does change the age at which your benefit reaches its full amount. Run the numbers for claiming at 62, 67, and 70 to see which scenario makes sense for your situation.

If you plan to work while claiming before your full retirement age, confirm the 2026 earnings test limit once it is announced in the fall of 2025. This will help you decide whether to claim now or wait until your full retirement age to avoid the earnings reduction.

Frequently Asked Questions

Does the full retirement age increase affect people born before 1960?

No. The gradual increase in full retirement age ended in 2022. If you were born in 1959 or earlier, your full retirement age is already set and will not change. For people born in 1960, the full retirement age is 67, and it remains 67 for everyone born after 1960.

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

The 2026 COLA will be announced in October 2025. It takes effect in January 2026 and applies to all Social Security beneficiaries. The exact percentage depends on inflation data collected between July 2024 and June 2025.

Can I still claim Social Security at 62 in 2026?

Yes. The earliest you can claim is still 62, regardless of your full retirement age. However, claiming at 62 when your full retirement age is 67 results in a permanent reduction of roughly 30 percent compared to waiting until 67. The reduction is larger than it was for people with a full retirement age of 66.

What happens to my benefit if I work and claim before my full retirement age?

The earnings test reduces your benefit by $1 for every $2 you earn above the annual limit. The 2026 limit has not been announced yet, but it typically increases each year. Once you reach your full retirement age, the earnings test no longer applies, no matter how much you earn.

Will my spousal benefit increase in 2026?

Yes, if you are receiving a spousal benefit, it will increase by the 2026 COLA percentage, just like all other benefits. The COLA is applied to all types of Social Security benefits — retirement, spousal, survivor, and disability.