Social Security payments will see these 3 changes in 2026: What to know about updates to benefits

"The 2026 cost-of-living adjustment (COLA) will increase benefits Social Security benefits and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8% in 2026, the Social Security Administration (SSA) announced on Friday. However, due to inflation and the skyrocketing cost of living, many retirees might not actually be getting more for their hard earned dollars. Each year the SSA announces a cost-of-living adjustment, known as COLA. Over the last decade, the COLA increase has averaged about 3.1%. This year's increase is 0.3% greater than 2025's 2.5% cost-of-living-adjustment, but far smaller than previous years with higher inflation, as CNN noted."

"So, how much does that add up to? For an average payment of $2,071, that's an additional $56 a month, which will kick in this January, according to the SSA. "Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today's economic realities and continue to provide a foundation of security," Social Security Administration Commissioner Frank J. Bisignano said in a statement. "The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.""

"The rules for collecting Social Security are changing in 2026. Two of the most important things to know if you're collecting benefits: Your monthly check payments will increase, and if you're planning on collecting benefits before retirement age and still plan to work, your checks could be reduced or even paused. Also changing in January: The maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100."

Cost-of-living adjustments will raise Social Security and SSI payments by 2.8% in 2026 for about 75 million beneficiaries. For an average monthly payment of $2,071, the increase equals about $56 more per month beginning in January. The decade-long average COLA has been about 3.1%, making 2026's rise modest compared with some prior high-inflation years. The taxable maximum for Social Security payroll tax will increase from $176,100 to $184,500 in January. Beneficiaries collecting before full retirement age who continue working may face benefit reductions or temporary pauses based on earnings limits.

Read at Fast Company