Mon Dec 29 14:10:00 UTC 2025: ## Social Security Shakeup: 2026 Brings COLA Boost and Other Key Changes

[City, State] – Social Security recipients, both current and future, should brace for significant changes in 2026. While the 2.8% Cost of Living Adjustment (COLA) announced in October has been the main focus, several other key updates are on the horizon, impacting earnings limits, maximum benefits, taxable income, and work credit values.

The COLA announcement, delayed due to a brief government shutdown, will see retirees receiving a 2.8% increase in their monthly benefits. However, this is just the tip of the iceberg.

Here’s a breakdown of the major changes coming in 2026:

  • Earnings Test Lift: For those receiving Social Security benefits before reaching full retirement age, the earnings limit is increasing. In 2026, individuals can earn up to $24,480 without impacting their benefits, up from $23,400 in 2025. Earnings beyond this threshold will result in $1 of Social Security being withheld for every $2 earned. The limit is even higher for those reaching full retirement age in 2026, rising from $62,160 to $65,160.
  • Maximum Benefit Bump: The maximum possible Social Security benefit is also increasing. At full retirement age, the maximum benefit will rise to $4,152 in 2026, up from $4,018 in 2025. Those claiming at age 70 in 2026 could potentially receive a maximum benefit of $5,251.
  • Wage Cap Increase: The amount of income subject to Social Security taxes is also increasing. The wage cap will rise to $184,500 in 2026, meaning earnings above this amount will not be subject to Social Security taxes. This primarily affects high-income earners.
  • Work Credit Adjustment: The value of a Social Security work credit is increasing from $1,810 to $1,890 in 2026. Individuals need 40 work credits to qualify for retirement benefits.

These changes, alongside the COLA, represent a significant shift in the Social Security landscape for 2026. The Motley Fool urges individuals, regardless of their current Social Security status, to stay informed about these developments to make informed decisions about their financial futures.

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