The Main Changes Coming in 2026

Social Security is making several changes in 2026 that will affect how much money you receive, when you can claim, and how work affects your benefits. The most visible change is an increase in the Full Retirement Age — the age at which you receive your full benefit amount without any reduction. Starting in 2026, this age moves from 66 and 10 months to 66 and 11 months, and it will continue rising by two months each year until it reaches 67 in 2027.

The earnings test — the rule that reduces your benefits if you work and earn above a certain amount — is also changing. The earnings limit will increase, meaning you can earn more money before Social Security reduces your payment. Additionally, the cost-of-living adjustment (COLA), which raises all benefit amounts each year to match inflation, will be recalculated annually based on actual inflation data from the previous year.

These changes do not happen all at once. Some affect people who are already receiving benefits, while others only matter if you are planning to claim in 2026 or later. Understanding which changes explore to your situation will help you make decisions about when to claim and how much to expect.

Key Takeaways

  • Full Retirement Age increases to 66 and 11 months in 2026, meaning you must wait longer to receive your full benefit amount without reduction.
  • The earnings test limit will increase in 2026, allowing you to earn more money before Social Security reduces your monthly payment.
  • If you were born in 1960, you will reach Full Retirement Age in 2026 and should review your claiming strategy before then.
  • Cost-of-living adjustments continue annually and are based on inflation from the prior year, so your benefit amount may change each January.
  • Early claiming at 62 will result in a larger permanent reduction in 2026 than it did in 2025, because the reduction is calculated as a percentage of your Full Retirement Age benefit.

How Full Retirement Age Affects Your Benefit Amount

Your Full Retirement Age determines the base amount Social Security uses to calculate your benefit. If you claim before reaching this age, your monthly payment is permanently reduced. If you delay claiming past this age, your payment increases by 8 percent per year until age 70.

In 2026, if you were born in 1960, you will reach Full Retirement Age of 66 and 11 months. This means if you claim at 62 (the earliest age allowed), your benefit will be about 30 percent lower than your Full Retirement Age amount — a larger reduction than someone born in 1959 would face, because the reduction percentage is based on how many months you claim early. If you were born in 1960 and wait until 70 to claim, your benefit will be about 124 percent of your Full Retirement Age amount.

The increase in Full Retirement Age is gradual and only affects people born after 1954. If you were born in 1954 or earlier, your Full Retirement Age remains 66. If you were born between 1955 and 1959, your Full Retirement Age is somewhere between 66 and 2 months and 66 and 10 months. You can find your exact Full Retirement Age on your Social Security statement or by using the Social Security Administration's retirement age calculator on their website.

Changes to the Earnings Test in 2026

The earnings test reduces your Social Security benefit if you work and earn more than a certain amount before reaching Full Retirement Age. In 2026, this earnings limit will increase from the 2025 amount. The Social Security Administration announces the exact dollar amount each October for the following year, so the 2026 limit will be published in October 2025.

Here is how the earnings test works: if you earn more than the limit in a year, Social Security reduces your benefit by $1 for every $2 you earn above that amount. Once you reach Full Retirement Age, the earnings test no longer applies, and you can earn any amount without affecting your benefit. This is an important distinction — the earnings test only applies to people who have claimed benefits before reaching Full Retirement Age.

For example, if the 2026 earnings limit is $23,400 (a hypothetical figure for illustration), and you earn $25,400, you are $2,000 over the limit. Social Security would reduce your benefit by $1,000 that year. However, if you reach Full Retirement Age in June 2026, the earnings test only applies to income earned before June, and only at the reduced rate for months before you reach Full Retirement Age.

Cost-of-Living Adjustments and Your Monthly Payment

Every January, Social Security increases all benefit amounts by a percentage called the cost-of-living adjustment, or COLA. This adjustment is meant to help benefits keep pace with inflation. The COLA for 2026 will be announced in October 2025 and will be based on inflation data from July 2024 through June 2025.

The COLA applies to all types of Social Security benefits — retirement, survivor, and disability. If you receive a benefit, your monthly payment will increase by the COLA percentage starting in January 2026. This increase is automatic; you do not need to do anything to receive it. Your new payment amount will appear in your January 2026 payment.

The COLA varies from year to year depending on inflation. In recent years, COLA has ranged from less than 1 percent to over 8 percent. Social Security publishes the official COLA announcement on their website in October each year, and you can also see your projected benefit amount (including estimated COLA) on your online Social Security account.

What Changes if You Plan to Claim in 2026

If you are planning to claim Social Security in 2026, the Full Retirement Age change directly affects your decision. The later your birth date in 1960, the higher your Full Retirement Age will be. Someone born January 1, 1960 has a Full Retirement Age of 66 and 10 months (still in 2026), while someone born December 31, 1960 has a Full Retirement Age of 66 and 11 months (also in 2026, but later in the year).

If you claim before reaching Full Retirement Age, your benefit will be reduced by a larger percentage in 2026 than it would have been in 2025. This is because the reduction percentage increases as Full Retirement Age increases. If you claim at 62 in 2026, you will receive a smaller percentage of your Full Retirement Age benefit than someone who claimed at 62 in 2025.

You should review your claiming strategy before 2026 if you were born in 1960. Consider whether claiming early, waiting until Full Retirement Age, or delaying until 70 makes sense for your situation. Your life expectancy, current income, and financial needs all play a role in this decision. You can create a my Social Security account on the Social Security Administration website to see your projected benefit amounts at different claiming ages.

How These Changes Affect People Already Receiving Benefits

If you are already receiving Social Security benefits in 2026, the earnings test change and COLA increase will affect you, but the Full Retirement Age change will not. Your Full Retirement Age was determined when you claimed your benefit and does not change.

If you are receiving benefits and still working, the 2026 earnings limit increase means you may be able to earn more before your benefit is reduced. This is particularly important if you claimed before Full Retirement Age and are still working. Once you reach Full Retirement Age, the earnings test no longer applies, regardless of how much you earn.

The COLA increase in January 2026 will raise your monthly payment automatically. This increase applies whether you claimed at 62, at Full Retirement Age, or anywhere in between. Your new payment will reflect both the COLA increase and any other adjustments Social Security has made to your account.

Planning Ahead: What to Do Before 2026

If you were born in 1960, now is the time to review your Social Security claiming strategy. You can request a detailed benefit statement from the Social Security Administration that shows your projected benefits at different claiming ages. This statement helps you understand the long-term financial impact of claiming early, at Full Retirement Age, or delaying.

If you are still working and receiving benefits, track your earnings against the current earnings limit. The Social Security Administration publishes the earnings limit each year, and you can find it on their website. If you expect to earn more than the limit, you can contact Social Security to discuss how this will affect your benefit.

If you have not yet created a my Social Security account, you can set one up on the Social Security Administration website. This account lets you view your earnings record, see your projected benefits, and manage your account online. Having this information before 2026 will help you make informed decisions about your benefits.

Frequently Asked Questions

Will my Full Retirement Age change if I was born before 1960?

No. Full Retirement Age only increases for people born in 1955 or later. If you were born in 1954 or earlier, your Full Retirement Age is 66 and will not change. You can find your exact Full Retirement Age on your Social Security statement or on the Social Security Administration website.

Does the earnings test explore after I reach Full Retirement Age?

No. Once you reach Full Retirement Age, the earnings test no longer applies, and you can earn any amount without affecting your Social Security benefit. If you reach Full Retirement Age partway through the year, the earnings test only applies to income earned before you reached that age.

How much will the 2026 COLA increase be?

The exact COLA percentage for 2026 will not be announced until October 2025. It is based on inflation data from July 2024 through June 2025. You can check the Social Security Administration website in October 2025 for the official announcement.

If I claim at 62 in 2026, will my reduction be larger than if I claimed at 62 in 2025?

Yes. Because Full Retirement Age is increasing, the reduction percentage for claiming at 62 is also increasing. Someone claiming at 62 in 2026 will receive a smaller percentage of their Full Retirement Age benefit than someone who claimed at 62 in 2025, all else being equal.

Can I see what my 2026 benefit will be before I claim?

Yes. You can create a my Social Security account on the Social Security Administration website to view your projected benefit amounts at different claiming ages. You can also call Social Security at 1-800-772-1213 to request a detailed benefit statement that shows your projected benefits.