Social Security Changes Coming in 2026: What to Expect

The Social Security Administration has shared the projected 2026 cost-of-living adjustments (COLA) and the new wage base limit for payroll taxes. These updates may impact benefits and taxable earnings. 

Important Changes

A few of the major changes to expect in 2026: 

• Cost-of-Living Adjustment (COLA): Increase of approximately 2.8% starting January 2026. Average benefits are expected to increase by about $56 per month, depending on individual benefit levels.  

• Wage Base: Increased to $184,500 (from $176,100).  

• Monthly Benefits: Increased to $4,152 (from $4,018).  

• Earnings Limit: Increased to $24,480 for under full retirement status. Increased to $65,160 for full retirement age status.  

The Personal Impact: What the New Social Security Figures Mean for You 

The latest Social Security adjustments will influence both your take-home income and your long-term retirement benefits. Taking time now to understand what these changes mean for you can help you make smarter, more strategic choices as you plan for 2026 and beyond. 

For Retirees	You can expect a minor increase; however, higher Medicare premiums may reduce the net benefit.  Rising costs in other areas could still outweigh the benefit increase.
For Workers	More of your income will be taxed for Social Security.  Employees and business owners will pay higher Social Security contributions.
For Workers Receiving Benefits	The higher earnings limit means you can earn more before your benefits are reduced.

Why Is It Changing? 

Each year, Social Security adjusts to keep pace with changes in the economy. These changes are meant to help maintain the program’s purchasing power for retirees and its financial stability over time. 

• Cost-of-Living Adjustment (COLA) 

  • This is based on the CPI-W inflation index  

  • Helps to keep up with rising prices  

• Wage Base  

  • Taxable earnings cap rises with national average wage index  

  • Increased so the system captures more payroll contributions 

    
    

Without these adjustments, inflation would erode retirees’ income and weaken the program’s financial base over time. 

What Should You Do Next? 

• Review your My Social Security account to confirm your updated information. 

• Contact Griffin & Furman, LLC for assistance in adjusting your 2026 budget, retirement projects, or tax withholdings. 

• Keep in mind that smaller COLAs can be offset by healthcare or living costs, so review your cash-flow needs and plan accordingly.  

These annual adjustments may seem small, but they’re an important reminder to review your benefits, update your plans, and ensure your retirement strategy continues to align with your financial goals. 

Sources:  

https://www.thepennyhoarder.com/retirement/early-look-social-security-increase/?aff_id=86&aff_sub3=20251028&aff_unique1=6324b4a45156ffae78111a3b&utm_medium=email&utm_source=daily&utm_campaign=20251028&cid=6324b4a45156ffae78111a3b&campaignId=15438504 

https://www.journalofaccountancy.com/news/2025/oct/social-security-wage-base-and-cola-announced-for-2026/?utm_source=mnl:cpal&utm_medium=email&utm_campaign=27Oct2025