New Year, New Rules: 5 Social Security Changes for 2026

📅 Last updated: December 27, 2025

As the final quarter of 2025 unfolds, attention is shifting to the impending policy landscape of the new year. The Social Security Administration is poised to implement several consequential modifications beginning January 2026, changes that will directly impact current beneficiaries and future planning alike.

The Five Key Adjustments for 2026

• Revised Earnings Threshold for Beneficiaries: The retirement earnings test exempt amounts will see an increase. This means individuals below their full retirement age who work while collecting benefits will be able to earn more before a portion of their benefits is temporarily withheld.
• Increased Benefit Caps for High Earners: The maximum taxable earnings base—the annual income limit subject to Social Security payroll tax—will rise. Consequently, higher-income earners will contribute more in taxes throughout the year, which may also translate to a higher potential benefit upon retirement.
• Adjustments to Disability Qualifications: The substantial gainful activity (SGA) threshold, used to determine eligibility for Social Security Disability Insurance (SSDI), will be adjusted upward. This change alters the monthly income limit that disqualifies an individual from receiving disability benefits.
• Cost-of-Living Adjustment (COLA) Implementation: The annual COLA, calculated based on inflation data from the third quarter, will be formally applied to benefit amounts starting with January’s payments. This increase is designed to preserve the purchasing power of benefits against inflation.
• Shift in Full Retirement Age Benchmark: A scheduled incremental change in the full retirement age (FRA) will continue its progression. For individuals turning 62 in 2026, the FRA will be slightly older than for those who reached eligibility in prior years, affecting the calculus for claiming benefits.

Stakeholders and financial advisors recommend reviewing these changes in the context of personal long-term strategies. Official guidance and personalized projections are available through the Social Security Administration’s online portal and local offices.

Image credit: Getty Images.

Key Takeaways

• Beneficiaries working before full retirement age can earn more without penalty.
• Higher earners will pay more in payroll taxes and may see higher future benefits.
• Disability income eligibility thresholds are increasing.
• Benefits will increase via COLA to match inflation.
• The full retirement age continues its gradual increase for newer retirees.