Retirees and their families account for 55.78 million of the nearly 70 million Americans who rely on Social Security benefits — and several worrisome changes are on the program’s agenda in 2026.
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While retirees shouldn’t panic over the upcoming changes to Social Security next year, they should understand them, prepare for them, and adjust their budgets accordingly.
The 2026 COLA Is Likely To Disappoint
The Social Security Administration (SSA) won’t release the official cost of living adjustment (COLA) for 2026 until October. However, the Senior Citizens League expects retirees to get a disappointing 2.7% raise in the new year. That’s up from 2.5% in 2025, and that’s identical to the 2.7% overall inflation rate from the most recent Consumer Price Index report. That seems fair, at least at a glance, because COLAs were designed to offset inflation, which a 2.7% benefits increase would do — at least on paper.
In reality, retirees spend a disproportionate amount of their income on housing and medical care, the inflation rates for which are 3.9% and 4.3%, respectively. That means the projected COLA will leave many retirees getting by with less in their heaviest spending categories.
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Medicare Will Be More Expensive, Making Social Security Checks Smaller
Medicare and Social Security are separate programs, but both are integral to retirement budgeting and changes to one impact the other because:
- Your Social Security covered earnings qualify you for both programs.
- Enrollment in Social Security automatically enrolls you in Medicare.
- The SSA processes Medicare applications.
Most importantly, most beneficiaries have their Medicare premiums deducted directly from their Social Security checks — and many retirees are going to suffer a double-digit percentage increase in that deduction next year.
According to the 2025 Social Security and Medicare Trustees Report, Part B premiums are set to increase to an average of $206.50 per month, up 11.6% from 2025. According to Kiplinger, that alone would effectively reduce the projected COLA from an extra $54.18 per month to a $32.68 increase — and the publication chronicles several other substantial Medicare cost increases for 2026, as well.
The Full Retirement Age Rises for the Last Time — at Least for Now
In November, the full retirement age (FRA) increased to 66 years and 10 months for people born in 1959. In 2026, a four-decade transition will be complete when the FRA for those born in 1960 or later increases to 67, where it is scheduled to remain indefinitely.
However, indefinitely might not be long.
In 2026, Social Security will be seven years away from the depletion of the trust that funds the program. At that time, the SSA will be able to pay only 77% of promised benefits without Congressional action, which has so far proven elusive.
Therefore, the change that should worry retirees the most is the one that lawmakers currently lack the political will to implement.
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This article originally appeared on GOBankingRates.com: 3 Changes to Social Security That Retirees Should Worry About in 2026
