In the new year, many Social Security rules are taking effect, affecting Americans’ benefit amounts, the full retirement age and more.
Some of the changes arrive courtesy of inflation adjustments, but the exact benefit amount could vary based on the recipient’s earnings circumstances.
Why It Matters
More than 70 million Americans rely on Social Security payments each month, and for many, it makes up a bulk of their regular income.
New COLA Goes Into Effect
Beginning on January 1, Social Security recipients are expected see their benefits rise by 2.8 percent because of the 2026 COLA.
Because of this, the average monthly benefit is climbing from $2,015 to $2,071. That’s a $56 boost, but the exact increase depends on the beneficiary’s work and retirement background.
Maximum Benefit Boost
January also ushers in a higher limit for the maximum Social Security benefit.
The highest income Social Security beneficiaries are now set to see a maximum benefit of $5,251 per month. That’s an increase from $5,108 last year.
To see this amount, they must have earned the maximum taxable earnings over the past 35 years and waited until age 70 to receive benefits.
Full Retirement Age
Another notable change is to the full retirement age. While this used to be 65, the age has gradually increased amid the SSA’s impending insolvency, and it is now set at 66 for those born between 1943 and 1954. For workers born in 1960 or later, the full retirement age is 67.
Earnings Test
The SSA plans to withhold some money from beneficiaries claiming Social Security while still working and earning above a certain amount.
For this year, seniors lose $1 for every $2 earned above $24,480 if they are under the full retirement age. For those at full retirement age, that’s $1 lost for every $3 earned over $65,160.
Disability Limits
The Substantial Gainful Activity limits are changed for disabled beneficiaries. This is described as the monthly income limit at which they would no longer be eligible for benefits depending on their specific disability.
For blind Americans, the limit is $2,830, while non-blind recipients have maximum earnings set at $1,690.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “While all Social Security beneficiaries will see a 2.8 percent increase in their checks in 2026, the recipients who will be the biggest winners are those earning additional income. The income thresholds for beneficiaries still working and those with disabilities is set to climb over $1,000 per current limit, giving more wiggle room to many seniors who are sticking with their jobs into traditional retirement years due to inflationary pressures. And while typically the best recommendation in tapping into benefits is to wait, this year also marks the highest monthly check amount ever for early claimers.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9Innings podcast, told Newsweek: “Not everyone will feel a meaningful increase. It is important to know that if your Medicare Part B premiums cause your Social Security benefit to actually decrease, you are protected by what is known as ‘hold harmless.’
“This protection applies only if your Medicare Part B premiums are deducted directly from your Social Security check and you are not subject to IRMAA. If you pay Part B premiums separately, are new to Medicare, or are not yet collecting Social Security, the hold harmless rule does not apply.”
What Happens Next
Under the new changes, Social Security experts are urging Americans to consider their specific income and health situation when deciding at what age to claim benefits.
Beene said, “For those claiming before their full retirement age, there are many factors to consider, but for some beneficiaries, claiming early could be worth the 30 percent cut in payments.”