Pure’s Financial Advisor, Kyle Farmer, CFP®, dives into 4 key Social Security changes to be aware of in 2026.
Transcript
Millions of Americans are leaving Social Security money on the table. Are you one of them? Today we’re going through 4 key Social Security changes you should be aware of in 2026.
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2026 COLA – 2.8%
The first change is to this year’s Social Security cost of living adjustment, also known as COLA. In 2026, the COLA is 2.8%, which is slightly higher than last year’s 2.5%. According to the SSA, the 2.8% increase will translate to an additional $56 for the average retiree, bringing the average monthly check up from $2,015 in 2025 to $2,071 in 2026. Married couples will see an average increase of $88, bringing their monthly average check up from $3,120 in 2025 to $3,208 in 2026.
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FRA Raises
The full retirement age, or FRA, is the age at which individuals qualify to receive 100% of their Social Security benefits. Over the past 42 years, there has been a gradual schedule increase to raise the FRA age to reflect longer life expectancies, reduce financial strain on the program, and bolster the trust fund. In November of 2026, those efforts will be realized as the FRA will reach 67 for those born in 1960 or later.
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Social Security Tax Limit
Social Security caps the amount of income you pay taxes on and get credit for when benefits are calculated. In 2026, the wage cap for Social Security taxes increased by $7,500, bringing the 2025 cap of $176,100 up to $184,500 in 2026.
Social Security will stop withholding taxes once you reach the maximum income amount for the year. However, there is no cap on Medicare taxes, meaning your total wages are subject to the 1.45% tax. There is also an additional 0.9% tax for individuals earning more than $200,000 per year, $250,000 for married couples filing jointly, or $125,000 for married people filing separately.
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Earnings Test
Continuing to work while collecting Social Security might reduce your monthly benefits check due to a rule called the Social Security earnings test. Fortunately, those limits typically rise every year, leaving more of your monthly Social Security intact.
The Social Security Administration temporarily withholds $1 of a worker’s benefits for every $2 earned above $24,480 ($2,040 a month) in 2026, up from $23,400 ($1,950 a month) in 2025. When you reach full retirement age, the test is more generous — you only forfeit $1 in benefits for every $3 in 2026 earnings above $65,160, an increase of $3,000 over the 2025 limit of $62,160. Once you reach your FRA, there is no limit on earnings for the remainder of the year, and any withheld benefits are restored.
These are some of the major changes to Social Security in 2026 that could broadly impact benefit recipients nationwide. To find out how recent changes may affect your benefits, reach out and schedule a Social Security Analysis with Pure Financial.
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