A 2.8% COLA and More: All of the Social Security Changes Happening in 2026 Maurie Backman, The Motley FoolNovember 3, 2025 at 2:36 AM 0 Key Points Social Security is undergoing some big changes in the new year. In addition to a more generous COLA, the program's earningstest limits and maximum monthly benefit are rising. Higher earners will have to pay more Social Security tax and work credits to qualify for benefits will be harder to snag.
- - A 2.8% COLA and More: All of the Social Security Changes Happening in 2026
Maurie Backman, The Motley FoolNovember 3, 2025 at 2:36 AM
0
Key Points -
Social Security is undergoing some big changes in the new year.
In addition to a more generous COLA, the program's earnings-test limits and maximum monthly benefit are rising.
Higher earners will have to pay more Social Security tax and work credits to qualify for benefits will be harder to snag.
The $23,760 Social Security bonus most retirees completely overlook ›
One interesting thing about Social Security is that changes to the program don't just impact retirees and the many non-retirees who receive benefits. Even if you're not able to collect Social Security, when the program's rules change, it could impact you in a meaningful way.
Social Security is undergoing a number of major changes in 2026, and it's important to be aware of what they entail. Here are the highlights.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Social Security cards.
Image source: Getty Images.
1. A 2.8% COLA
In 2025, Social Security beneficiaries received a 2.5% cost-of-living adjustment, or COLA. At the time, that raise was disappointing, since it was considerably lower than the 3.2% COLA that arrived in 2024, and well below the record-breaking 8.7% COLA that came in 2023.
In 2026, Social Security benefits are getting a 2.8% raise. And while Medicare Part B hikes may eat into that COLA to some degree, it's a larger raise to start off with, which is something many retirees are no doubt grateful for.
2. A higher wage cap
Social Security is funded primarily through payroll taxes. But each year, there's a maximum amount of income that's taxed for Social Security purposes.
In 2025, the wage cap for Social Security is $176,100. In 2026, the wage cap is rising to $184,500, which means higher earners will lose more of their paychecks.
It's easy to grumble about paying more Social Security tax. But the reality is that higher earners who pay more into the system also tend to be eligible for more generous benefits once retirement arrives. So there is some upside to paying those higher taxes.
3. A higher earnings-test limit
Retirees on Social Security are allowed to work while collecting benefits. And once you reach full retirement age, you can earn any income without having to worry about it impacting your Social Security benefits in a negative way.
If you work while on Social Security and you have not reached full retirement age, you'll be subject to an earnings test. Thankfully, though, the earnings-test limits are rising in 2026, which means seniors can earn more money before risking having some of their Social Security withheld.
For seniors who won't reach full retirement age in 2026, the earnings-test limit is rising from $23,400 to $24,480. After that threshold, $1 in Social Security is withheld per $2 of earnings.
For seniors who will reach full retirement age at some point in 2026, the earnings-test limit is rising from $62,160 to $65,160. From there, $1 in Social Security is withheld per $3 of earnings.
Withheld benefits are not lost forever, though. Once you reach full retirement age, your monthly benefits will be recalculated and you'll get the money back in the form of larger checks.
4. A higher work credit value
To qualify for Social Security in retirement, you need to earn 40 work credits. And the maximum number of credits you can earn in a single year is four.
In 2025, $1,810 in earnings gets you one work credit. In 2026, you'll need to earn $1,890 to earn a work credit. This means that if you earn $7,560 or more next year, you're eligible for the maximum number of Social Security credits possible.
5. A higher maximum monthly benefit
Since Social Security limits the amount of income it taxes each year, it also limits the benefits it will pay. In 2026, the maximum monthly benefit for Social Security recipients retiring at full retirement age is $4,152, up from $4,018 this year.
Keep in mind, though, that delaying your Social Security claim past full retirement age could result in even larger monthly checks. For each year you hold off on filing for Social Security until age 70, your benefits get a permanent 8% boost.
Clearly, there's a lot happening with Social Security in 2026. It pays to read up on changes to the program so you're well informed -- whether you're currently receiving benefits or not.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy.
Source: "AOL Money"
Source: Money
Published: November 03, 2025 at 11:18AM on Source: ALPHA MAG
#ShowBiz#Sports#Celebrities#Lifestyle