If you receive Social Security, you may be closely watching what changes may come in 2026. However, even if you don’t receive benefits or feel like you’re years away from needing to pay attention, the new year may bring conversations about big changes that could impact you years down the road.
“There’s growing pressure for Social Security updates, and 2026 is shaping up to be a year where some of those long-running conversations finally move forward,” said Taylor Kovar, certified financial planner (CFP) and CEO of 11 Financial. “One of the biggest ideas being discussed is raising the full retirement age for younger workers. It wouldn’t affect people nearing retirement now, but it could reshape the timeline for people who still have decades ahead of them.”
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Here’s a look at some big shakeups that might be coming to Social Security next year.
Cost-of-Living Adjustment
The 2026 Social Security Cost-of-Living Adjustment (COLA) is 2.8%, effective January 2026.
“As it is typically done, there will be an increase for social security next year and folks should have already received documentation stating this,” said Brandon Gregg, CFP, advisor with BBK Wealth Management. “They should use the new income numbers to update and plan for their 2026 budget.”
Per Taylor, COLA may receive more attention in 2026. “Many retirees feel the current formula doesn’t match what they’re actually spending on healthcare and basic living costs, so a more accurate method could lead to better annual increases.”
Medicare Premiums
A significant portion of the COLA increase may be offset by an expected rise in Medicare Part B premiums, which could go up to more than $206 monthly.
“This eats into the added income from the COLA adjustment,” Gregg noted. “In the same way retirees need to plan for the added income, they also need to plan for the added expense.”
Social Security Taxes
According to Melanie Musson, a finance expert with Quote.com, “The biggest downside to the good news for retirees is that pre-retirees with higher incomes will have to pay Social Security taxes on a larger share of their income. It’s not a huge increase, though, and most people should be able to afford and absorb the higher tax.”
Pressure on the System
Per David Dozier, an attorney and managing partner at Dozier Law, “There is considerable pressure building already on Social Security — several financial analysts I’ve talked to say it’s fair to expect that 2026 will see fairly serious stress on the system, given that the program’s trust fund is running low and getting closer to the date at which it was projected to become empty.”
As of right now, according to Dozier, there are talks in the ether about changes to the full retirement age, higher payroll tax rates for upper income earners and new benefit formulas for younger workers.
“These aren’t panic proposals — they’re purely structural responses to longer life expectancies and a worker-to-beneficiary ratio that tightens every year,” Dozier said.
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This article originally appeared on GOBankingRates.com: 4 Big Shakeups That Might Be Coming to Social Security in 2026
