The only constant in life is change. Unfortunately, it does not come easily to some people, and it can be daunting if it impacts you or your loved ones. Thankfully, a certain federal agency will assist citizens in its upcoming shifts in the Full Retirement Age, as it is crucial to understand why this shift is happening so that the transition can be simpler. However, it won’t be the only change, as citizens will have to brace themselves more in the upcoming months. The world is evolving, so must we.

This is why Social Security matters in this day and age

Among the most expensive countries around the world to live in is the United States. The U.S. is currently ranked 9th in the world, and according to Wise, the following factors account for the U.S.’s high cost of living:

Energy costs: Skyrocketing energy expenses, influenced by global oil shocks, increase the overall cost of living, affecting everything from utilities to transportation
Housing: Certain states have high demand and limited supply, increasing housing costs
Healthcare: The US healthcare system is infamously expensive, with high fees for doctor visits and treatments
Geographic factors: Some locations are reliant on imports, which increases the prices of goods such as groceries

According to Wise, ensuring that you have adequate social insurance in place can assist in affording everyday essentials, which is why Social Security is so crucial to many. Now, the Social Security Administration (SSA) has announced some upcoming changes, which could affect thousands of beneficiaries. Some are good, some not so much.

The Full Retirement Age is about to change

Most people look forward to retirement after many years of hard work and dedication, but now, some will have to wait a little longer before they can fulfill that dream, as the Full Retirement Age (FRA) is about to change. The FRA used to be ages 65 and 66 years and 10 months, at which citizens could retire and receive full Social Security benefits.

Why is this happening? In 1983, a federal regulation was approved to ensure that the FRA gradually increases. People are living longer, so the increase in the FRA is necessary to maintain the Social Security system. Those who are fortunate enough can still opt for early retirement at the age of 62, but according to Enlace Latino NC, retiring at this age will significantly decrease your monthly benefit.

According to the SSA Provisions Affecting Retirement Age, citizens born on January 2, 1960, and thereafter will have to wait until age 67 to receive their full monthly Social Security benefit. This change will be effective on:

Beneficiaries should prepare for these upcoming

But wait, there’s more! According to The Motley Fool, beneficiaries can expect a change in the annual cost-of-living adjustment (COLA). The COLA for 2026 will be announced by the SSA in mid-October 2025. A nonprofit organization called the Senior Citizens League predicts that the 2026 COLA will be 2.6% based on present data. It would be slightly higher than the 2025 2.5% COLA increase.

Others predict that the limit on maximum taxable earnings will also increase in January, and will apply to working citizens. The 2025 limit is $176,100, but estimates predict a limit increase to $183,600 in 2026. The maximum taxable earnings are the total of annual earnings subject to FICA taxes utilized to fund Social Security.

Change can be scary, which is why it is important to understand all the new rules and to plan. Not only will it make the upcoming changes less daunting, but it will also ensure your financial security in old age. Remember, these are general guidelines, and making big decisions such as choosing your retirement age should reflect your own life expectancy and health. There is another SSA change, and it will affect one group of beneficiaries sooner than expected.

Disclaimer: This content is informational only and does not supersede or replace the SSA’s or IRS’s own publications and notices. Always verify any specific dates and amounts by following the direct links in our article to SSA.gov or IRS.gov, or by consulting your local SSA field office or tax professional.