More than 70 million Americans will see several changes to their Social Security benefits in 2026, including adjusted payment schedules, cost-of-living increases, and new income limits for early retirees.
At a Glance
- 2.8% COLA boost raises average monthly checks by $56
- Medicare Part B premiums jump 9.7% to $202.90, trimming the raise
- Early retirees can earn up to $24,480 before benefits are withheld
- Why it matters: Higher premiums and taxes could eat into the 2026 raise for millions of seniors
The Social Security Administration will distribute January payments on Jan. 14, 21, and 28, based on birth-date groups. Those born between the 1st and 10th receive checks first, followed by the 11th-20th, then the 21st-31st.
Cost-of-Living Adjustment Climbs 2.8%
The agency announced in October that monthly benefits will rise 2.8% in 2026. Retirees will notice the increase on checks dated January 2026. Paper notices mailed in early December show the exact dollar change; account holders can also view COLA details online.
- Average retiree: $2,015 → $2,071 (+$56)
- Average couple: $3,120 → $3,208 (+$88)
Medicare Part B Premium Hike
The Centers for Medicare and Medicaid revealed in November that standard Part B premiums will increase from $185 to $202.90-a 9.7% jump. Because most beneficiaries pay premiums via automatic deduction from Social Security, the higher charge directly offsets part of the COLA gain.
Maximum Monthly Benefits Rise
Social Security caps the top monthly amount a worker can collect at full retirement age. That ceiling moves from $4,018 in 2025 to $4,152 in 2026. Workers who delay claiming until age 70 can receive up to $5,251 per month next year.
Earnings Limits for Early Claimers
Claiming before full retirement age permanently reduces monthly benefits and triggers earnings tests. In 2026:
| Age Group | Annual Earnings Limit | Withholding Rate |
|---|---|---|
| 62-65 | $24,480 | $1 per $2 above limit |
| Year of full retirement age | $65,160 | $1 per $3 above limit |
Previous limits were $23,400 and $62,160, respectively.
New Tax Deduction for Seniors
A temporary $6,000 bonus deduction, created under the “One Big Beautiful Bill,” aims to soften federal taxes on Social Security income for people 65 and older. The provision expires after 2028 and phases out at higher incomes.
| Filing Status | Full Deduction MAGI | Partial Deduction MAGI |
|---|---|---|
| Single | up to $75,000 | up to $175,000 |
| Married filing jointly | up to $150,000 | up to $250,000 |
The deduction is added on top of the existing standard deduction for seniors.
Disability and Work Rules
Social Security Disability Insurance (SSDI) recipients may work while keeping benefits if earnings stay below set levels:
- Non-blind workers: up to $1,690 per month
- Blind workers: up to $2,830 per month
Trial work period threshold rises from $1,160 to $1,210 monthly, allowing beneficiaries to test their ability to work without immediately losing eligibility.
Key Takeaways
- The 2.8% COLA adds about $56 to typical monthly benefits
- Medicare Part B will cost $17.90 more per month, trimming the raise
- Early retirees can earn $24,480 before Social Security withholds benefits
- A $6,000 senior tax deduction may reduce federal taxes on benefits through 2028
