Social Security has undergone several important changes that affect retirees, people with disabilities, survivors, public-sector retirees, and workers who are still paying into the system.
For 2026, beneficiaries received a 2.8% cost-of-living adjustment (COLA). Other changes increased Social Security's taxable wage limit, raised the amount people can earn while collecting early retirement benefits, increased SSI payments, and changed disability-related earnings thresholds.
Looking ahead, another COLA is expected for 2027, but the final percentage has not yet been announced.
Here is what Social Security recipients and future retirees need to know.
The 2026 Social Security COLA Is 2.8%
Social Security retirement, disability, and survivor benefits increased 2.8% for 2026.
The Social Security Administration calculates the annual COLA using inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W.
The 2026 adjustment increased the estimated average retirement benefit from approximately $2,015 to $2,071 per month, an increase of about $56.
Other estimated average benefits increased as well:
| Benefit category | Before 2026 COLA | After 2026 COLA |
|---|---|---|
| Average retired worker | $2,015 | $2,071 |
| Retired couple, both receiving benefits | $3,120 | $3,208 |
| Average disabled worker | $1,586 | $1,630 |
| Aged widow or widower living alone | $1,867 | $1,919 |
Actual increases vary because COLAs are applied to each person's individual benefit amount.
When Are COLA Adjustments Added to Social Security Checks?
This is an area that often causes confusion.
The annual COLA technically applies to December Social Security benefits, but Social Security retirement, survivor, and disability benefits are generally paid the following month.
That means the 2026 COLA first appeared in Social Security payments received in January 2026.
SSI works differently. The increased 2026 SSI payment was issued on December 31, 2025, because January 1 was a federal holiday.
When will the 2027 COLA appear?
The same basic process will apply to the next adjustment.
The 2027 Social Security COLA will be announced in October 2026 after the government has the CPI-W data needed to calculate it.
Once finalized:
- Social Security retirement, SSDI, and survivor beneficiaries should see the new COLA reflected in benefits payable for December 2026 and generally received in January 2027.
- SSI recipients generally receive the new rate beginning with the payment for January 2027, although the actual deposit may arrive at the end of December when January 1 falls on a federal holiday or weekend.
SSA normally sends beneficiaries a notice showing their new benefit amount before the new rate takes effect. People with a my Social Security account may also be able to view their updated benefit information online.
How Much Will the 2027 Social Security COLA Be?
As of August 26, 2026, there is no official 2027 COLA percentage.
Social Security says the next COLA will be announced in October 2026.
The 2026 Social Security Trustees Report currently uses a 2.7% COLA assumption for 2027, but that is a projection used for financial forecasting. It is not the official COLA.
For example, if the final COLA were 2.7%, a person receiving a $2,000 monthly benefit before the adjustment would see a gross increase of approximately:
$2,000 × 2.7% = $54 per month
That would bring the gross benefit to roughly $2,054 per month before Medicare premiums, tax withholding, or other deductions.
The actual 2027 percentage could be higher or lower.
Why Your Social Security Deposit May Not Rise by the Full COLA Amount
A COLA increases your gross Social Security benefit, but that does not necessarily mean your bank deposit will increase by exactly the same amount.
For many retirees, Medicare Part B premiums are deducted directly from Social Security.
The standard Medicare Part B premium increased from $185 per month in 2025 to $202.90 per month in 2026, an increase of $17.90.
For example, someone receiving a $56 gross Social Security COLA increase who also experienced the full $17.90 increase in the standard Part B premium would see a smaller increase in the amount deposited into their bank account.
Higher-income Medicare beneficiaries can also pay income-related Medicare surcharges, known as IRMAA.
This is why beneficiaries should compare their gross Social Security benefit with their net payment after Medicare and other deductions.
Social Security's Maximum Taxable Earnings Increased
Workers also saw an important Social Security change in 2026.
The maximum amount of wages subject to the 6.2% Social Security payroll tax increased from:
$176,100 in 2025 to $184,500 in 2026.
An employee earning at or above the maximum pays up to $11,439 in Social Security payroll tax for 2026, with the employer paying an equal amount.
Self-employed individuals generally pay both portions through the self-employment tax rules.
Unlike Social Security taxes, there is no comparable wage ceiling for the regular Medicare payroll tax.
Working While Receiving Social Security: Higher Earnings Limits
People can work while collecting Social Security retirement benefits, but beneficiaries who have not reached their full retirement age can temporarily have some benefits withheld if their earnings exceed the annual limit.
For 2026, the earnings limit increased.
If you are under full retirement age for all of 2026
You can earn up to:
$24,480 per year, or $2,040 per month
before the retirement earnings test begins to apply.
Social Security generally withholds $1 in benefits for every $2 earned above the limit.
If you reach full retirement age during 2026
The higher limit is:
$65,160
Social Security generally withholds $1 for every $3 earned above that amount, but only earnings before the month you reach full retirement age are counted under this rule.
Once you reach full retirement age
There is no earnings limit.
You can work and earn any amount without losing Social Security retirement benefits because of the retirement earnings test.
It is also important to understand that benefits withheld under the retirement earnings test aren't necessarily permanently lost. SSA can adjust your benefit after you reach full retirement age to account for months in which benefits were withheld.
SSI Benefits Also Increased in 2026
The federal Supplemental Security Income maximum increased for 2026.
The federal monthly maximum is now:
- $994 for an eligible individual, up from $967 in 2025.
- $1,491 for an eligible couple, up from $1,450.
Some states add supplemental payments, so the actual amount an SSI recipient receives can differ.
The federal SSI resource limits remain $2,000 for an individual and $3,000 for a couple.
Disability Earnings Limits Increased
People receiving disability benefits should also know about changes to the Social Security disability earnings thresholds.
For 2026, substantial gainful activity, or SGA, is generally:
- $1,690 per month for non-blind individuals
- $2,830 per month for blind individuals
The amount used to determine a Trial Work Period month increased to $1,210 in 2026.
Disability work rules can be complicated, so someone receiving SSDI should understand how employment may affect benefits before assuming that these numbers alone determine eligibility.
Major Change for Teachers, Firefighters and Other Public Employees: WEP and GPO Were Repealed
One of the biggest Social Security changes in recent years came from the Social Security Fairness Act.
The law repealed two rules known as the:
Windfall Elimination Provision (WEP) and
Government Pension Offset (GPO).
These provisions previously reduced Social Security benefits for certain people receiving pensions from employment that was not covered by Social Security.
Affected workers included some teachers, firefighters, police officers, federal Civil Service Retirement System employees and others.
The repeal applies to Social Security benefits payable for January 2024 and later.
SSA completed adjustments for millions of affected beneficiaries. By July 2025, the agency reported sending more than 3.1 million payments totaling about $17 billion under the Social Security Fairness Act.
However, not every government employee qualifies for an increase. WEP and GPO only affected certain people who had pensions from employment that was not covered by Social Security.
People who never applied for a Social Security benefit because they believed WEP or GPO would eliminate it may need to file an application. The repeal does not automatically override the normal rules governing how far back a new claim can be paid.
A New Tax Deduction May Help Some Social Security Recipients Age 65 and Older
Another recent change involves federal income taxes rather than the Social Security benefit formula itself.
For tax years 2025 through 2028, eligible taxpayers age 65 or older may claim an additional federal deduction of up to:
$6,000 per qualifying person
or as much as:
$12,000 for a married couple when both spouses qualify.
The deduction begins phasing out for taxpayers with modified adjusted gross income above $75,000 for an individual or $150,000 for married couples filing jointly.
Does this mean Social Security is no longer taxable?
No.
The law did not simply eliminate federal taxation of Social Security benefits for everyone.
Instead, it created an additional deduction for qualifying people age 65 and older. Depending on income and other circumstances, the deduction can reduce or even eliminate federal income tax liability for some retirees.
That distinction matters because people under 65 who receive Social Security, as well as higher-income retirees who do not qualify for the full deduction, can still face federal taxes on their benefits.
State taxation rules are separate.
What Is Happening With Social Security's Trust Funds?
Social Security benefits are still being paid under current law, but the program faces a long-term financing problem.
According to the 2026 Social Security Trustees Report, the Old-Age and Survivors Insurance Trust Fund is projected to have enough reserves to pay full scheduled benefits until the fourth quarter of 2032.
If Congress made no changes before reserves were depleted, continuing revenue would be sufficient to cover about 78% of scheduled OASI benefits at that point.
Looking at the retirement and disability trust funds on a combined basis, reserves are projected to last until 2034, at which point continuing income would cover approximately 83% of scheduled benefits.
This does not mean Social Security is scheduled to disappear in 2032 or 2034.
Payroll taxes and other program income would continue coming in. The issue is whether those revenues would be enough to pay 100% of currently scheduled benefits if lawmakers did nothing.
Congress could make changes to taxes, benefits, retirement rules, or financing before then.
What Social Security Recipients Should Watch Next
The next major announcement for current beneficiaries will be the 2027 COLA in October 2026.
After the COLA is announced, beneficiaries should watch for three numbers:
- Their new gross Social Security benefit.
- The Medicare Part B premium and any applicable Medicare surcharges for 2027.
- Their resulting net monthly Social Security payment.
The COLA percentage alone doesn't always tell you how much more money will actually reach your bank account.
Frequently Asked Questions
When will the next Social Security COLA be announced?
SSA is scheduled to announce the 2027 COLA in October 2026, after the necessary third-quarter inflation data becomes available.
When will the 2027 COLA show up in my check?
For Social Security retirement, survivor and disability beneficiaries, the new COLA generally applies to the December benefit that is paid in January 2027.
SSI recipients generally receive the new rate beginning with the January payment, although calendar and federal holiday rules can cause the deposit to arrive in late December.
Is the 2027 COLA 2.7%?
Not officially.
The 2026 Trustees Report assumes a 2.7% COLA for forecasting purposes, but the actual adjustment won't be known until SSA completes the statutory calculation using third-quarter CPI-W data.
Do I need to apply for the annual COLA?
No. COLAs are automatically added to eligible Social Security and SSI benefits.
Can Medicare reduce my COLA?
Medicare doesn't change the gross COLA itself. However, if your Medicare premiums are deducted from Social Security and those premiums increase, your net deposit may rise by less than your gross COLA increase.
Will Social Security run out of money?
Current projections do not show Social Security simply disappearing. The 2026 Trustees Report projects that the combined trust funds can pay full scheduled benefits through 2034. Without congressional action, incoming program revenue would still be sufficient to pay an estimated 83% of scheduled combined benefits at that point.
Bottom Line
The most important confirmed Social Security changes for 2026 include the 2.8% COLA, higher taxable earnings and retirement earnings limits, increased SSI and disability thresholds, and the continuing effect of the WEP and GPO repeal.
The next major change will be the 2027 COLA.
As of August 26, 2026, that percentage has not been officially determined. SSA will announce it in October, with the adjustment generally appearing in Social Security payments received in January 2027.
Beneficiaries should also remember that the gross COLA isn't necessarily the same as the increase in their bank deposit. Medicare premiums, tax withholding and other deductions can affect the final amount.
This article is for general educational purposes and is not individualized financial, tax, legal, or Social Security claiming advice.