Changes are coming to Social Security in January 2026, as reported in the article “3 Social Security Changes Coming in January 2026: What You Need to Know” from yahoo! finance. Here’s what you’ll need to know for next year.
Social Security COLA
The change most Social Security recipients wonder about is the annual Cost-of-Living Adjustment, more commonly referred to as COLA. The Social Security Administration (SSA) has announced that the COLA adjustment for 2026 will be in increase of 2.8 percent. This figure is based on the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of 2024 through the third quarter of 2025.
AARP reports that the average retirement benefit will rise by about $56 per month, from an average of $2,015 to $2,071. This will be offset by the increases in Medicare Costs which are also based on the COLA. Most retirees report that this modest increase in Social Security Benefits will not be enough to keep pace with rising costs like food, housing, medication, and more.
Medicare Premiums
The standard monthly premium for Medicare Part B, for those with Traditional Medicare, is expected to rise in 2026. Rising healthcare costs will also impact seniors with Medicare Advantage plans. Medicare Recipients are advised to review their plan annually to ensure it is the right fit for their needs. If you need help reviewing your Medicare benefits, you can get free, unbiased help through the Area Agency on Aging, or through local Non-profit agencies such as The Senior Source, or The Wellness Center of Collin County.
Full Retirement Age
The full retirement age (FRA) will increase to 67 in 2026. For many years, the FRA was 65; then, in 1983, legislation was passed, moving it to 67 for boomers born in 1960 or later. When 2026 arrives, the period of gradual increases will come to an end. One thing to note: the age when you can take Social Security is still 62, and the age to maximize Social Security benefits is still age 70. Take benefits early, however, and you’ll receive less every month.
Maximum Taxable Earnings
In 2026, there will be an increase in the maximum taxable earnings. This applies to working taxpayers, not retirees. The maximum, also referred to as the ‘contribution and benefit base,’ is the maximum amount of annual earnings subject to FICA taxes. There’s no maximum for taxable earnings for the part of FICA payments that fund Medicare.
The Maximum Taxable Earnings will rise in 2026 to $184.500 from $176,100 in 2025.
Additional Standard Deduction
Another change most retirees will see is the new additional standard deduction for all Americans age 65 and older. The deduction can be as much as $6,000 for a single taxpayer and $12,000 for married senior couples who file jointly. There are a few caveats to be aware of:
- It’s temporary and will end in 2028.
- Not all seniors will get this higher standard deduction. It phases out for singles with a Modified Adjusted Gross Income (MAGI) of $75,000 and $150,000 for married couples.
The $6,000 per person tax deduction is reduced by 6% of the amount of MAGI exceeding income limits. There’s no bonus for singles with MAGI above $175,000, and married couples with incomes above $250,000 don’t receive any bonus.
Government Shutdown
Due to the fourth quarter 2025 Government Shutdown, Social Security offices partially open, with limited services available at this time. Many workers have been furloughed. The agency reports: Due to the Federal Government Shutdown, Social Security offices are open with reduced services. Hearings offices remain open to conduct hearings before an Administrative Law Judge (ALJ). Social Security and Supplemental Security Income payments to beneficiaries will continue with no change in payment dates.
There is no indication of when a Federal budget will be passed, and the government offices will fully re-open. Read more about these changes and more at: https://www.aarp.org/social-security/biggest-2026-changes/.
References: yahoo! finance (Aug. 3, 2025) “3 Social Security Changes Coming in January 2026: What You Need to Know”
