AMERICANS are bracing for six massive changes to Social Security in 2026.
The changes will have huge effects on recipients, ranging from retirement age checks to tax limits.
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Americans are bracing for six massive changes to Social Security in 2026Credit: Getty
Social Security changes don’t only impact retirees, they impact the current workers that will soon be eligible for the benefits.
Keeping an eye on Social Security changes is essential, because they will force you to work for longer before you can earn any financial support – see the full list.
1. RETIREMENT AGE
One of the biggest changes to Social Security will be an increase in the retirement age, moving it up to 67 for those born in 1960 or later.
To qualify for 100% Social Security benefits, you will have to work for longer.
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It is thought that this change will impact those between the ages of 30 and 59 the most.
The change marks a culmination in the slow move of the retirement age from 65 to 67, which was started in 1983 with amendments to the Social Security Act.
Later this year in November, the penultimate step will take place, increasing the age to 66 years and 10 months for those born in 1959.
2. COST OF LIVING ADJUSTMENT
The annual cost of living adjustment (COLA) to Social Security benefits is looking low for 2026.
This is an adjustment to payment amounts that takes into account the rising cost of living, resulting in increased payments for recipients.
The COLA for 2026 is expected to be a small increase of 2.7%, which would actually be higher than last year’s at 2.5%.
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This would increase monthly checks by $54.18, translating to $650.16 a year.
A high COLA means more money, but only to reflect the tougher economic environment, so recipients could still be left counting their pennies.
3. TAX LIMIT
Next year, the wage cap for paying Social Security taxes will increase, meaning you will have to earn more to enjoy a tax cap.
Social Security limits the amount of income you pay tax on, but the higher the income level the cap sits at, the more tax you will have to pay.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
401(k) Plans
A 401(k) is a retirement account offered through employers, where contributions are tax-deferred. Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings. Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.IRAs
An Individual Retirement Account (IRA) offers another avenue for retirement savings. Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices. Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
This is because you will have to earn more to have a limit for how much you pay in income taxes.
If you do not meet this threshold, you will be asked to pay the full amount of income tax.
The tax limit went up to $176,100 in 2025, from $168,000 in 2024, and for 2026 it is estimated to rise to $183,600, per the 2025 Social Security Board of Trustees Report.
This would translate into $465 more to pay in taxes annually for a total tax of $11,383.20.
4. BENEFITS FOR WORKING
If you continue to work while collecting Social Security, the government will withhold or reduce your monthly benefits check.
This is determined by your income level, a cap which increases every year, leaving you with more of your Social Security check in tact each year.
For example, in 2025, $1 was withheld for every $2 earned over an income level of $23,400.
But this is going up in 2026, meaning more recipients will be able to keep all of their benefits while working.
In 2026, $1 of benefits will be withheld for every $3 earned above an income limit of $64,800.
This happens until the recipient reaches full retirement age.
5. SOCIAL SECUIRTY CREDITS
In 2026, it will become harder to earn the Social Security credits that you need to earn before being paid.
You must earn 40 work credits to be eligible for benefits, and to earn one you must have wages and self-employment incomer of $1,810.
You can earn up to four a year, and currently, getting our credits comes with a threshold of $7,240 in income.
This is set to rise in 2026, so you will need to earn more before you can be paid in Social Security.
6. FADING TRUST FUND
It is feared that deep cuts to Social Security will be needed in 2026 to avoid the trust fund from becoming insolvent.
The trust fund is what the Social Security payments come out of.
This would reduce the amount of benefits you are paid, with cuts of 13% projected for next year.
Even then, the Congressional Budget Office (CBO) still thinks this will have limited impacts.
The office believes 20% is what is necessary to adequately slow down the insolvency issues.
Putting that into context, a potential 23% cut would require beneficiaries to save nearly $150,000 to cover they money they would lose.
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Social Security changes don’t only impact retirees, they impact the current workers that will soon be eligible for the benefitsCredit: Alamy