Collecting Social Security? These 2026 changes could affect your money

Roughly 75 million Americans will receive a 2.8% boost to their income in 2026, thanks to the upcoming cost-of-living adjustment for Social Security benefits and Supplemental Security Income (SSI) payments. But other changes afoot to the program will affect people who are still working, without a glint of retirement yet in their eyes.

The annual COLA update, as it’s known, is often the main change to Social Security we hear about because it’s a useful gauge to see how your pay increase compares. But because workers pay into the system, some of the annual changes also affect your paycheck.

Here’s what to know.

HIGHER INCOMES TO BE TAXED

As part of its annual inflation-related update to the program, the Social Security Administration also adjusts the taxable maximum for wages—the primary source of funding for this program.

While these changes affect high earners, it could mean that you’ll see some more money taken from your paycheck in taxes. Employees are taxed 6.2% of their earnings up to a certain limit for Social Security, while employers are required to chip in the same amount.

In 2026, people earning up to $184,500 will pay Social Security taxes, up from 176,100 in 2025.

HIGHER EARNING LIMITS FOR COLLECTING BENEFITS

While many people may think of Social Security as a program that’s reserved solely for retirees, you can continue working while simultaneously receiving these benefits. And the federal agency has likewise increased the amount of income that people can earn before benefits are withheld.

You can start receiving Social Security as early as 62 and in 2026, you can earn up to $24,480 without having any of these benefits withheld. For earnings beyond this amount, $1 in benefits will be deducted for every $2 earned. This earnings limit increased from $23,400 in 2025.

Meanwhile, people who will reach full retirement age in 2026—a few months short of 67—then you can earn up to $65,160 in earnings before your benefits are withheld. Beyond that amount, $1 in benefits will be deducted for every $3 earned. That amount has increased from $62,160 in 2025.

This may sound unfair, but withheld benefits come back to you later—you’ll receive larger monthly Social Security checks once you reach full retirement age, though claiming Social Security before full retirement age will reduce your monthly benefits for life.

PART-TIME WORK CREDITS

In order to eventually collect Social Security benefits, you must accrue a minimum 40 work credits in your lifetime—roughly equivalent to 10 years of work. But the amount of benefit you will be paid each month depends on your highest 35 years of earnings.

For people who work especially part-time roles, it could become a little bit more challenging to earn those work credits starting in 2026. That’s because the value of each work credit is increasing from $1,810 to $1,890, which means that you need a total annual income of $7,560 to be eligible for the maximum of four credits.

CHANGES FOR RETIREES

Not surprisingly, the biggest changes to Social Security will affect those people who are collecting benefits. What’s new in 2026 may or may not be welcomed news.

Take the COLA increase, for example. While it’s slightly above a 25-year average of about 2.6%, this increase may not be sufficient for many retirees, according to AARP. Even a 3% COLA for 2026 wouldn’t be enough, according to 77% of older adults surveyed by the organization in September.

While retirees are getting some relief on one front, they’ll be paying more for healthcare.

One provision in the tax bill known as the One Big Beautiful Bill means that people 65 and older could reduce or fully offset taxes on Social Security income—by up to $6,000 for eligible taxpayers.

But retirees will be paying more to access healthcare. In November, the Centers for Medicare & Medicaid Services announced that the standard monthly premium for Medicare Part B, will increase 9.7% to $202.90 in January.

All of the changes, both for retirees and workers, will go into effect beginning January 1.