2026 Social Security Changes: What You Need to Know to Avoid Surprises
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Starting in January 2026, millions of Social Security and Supplemental Security Income (SSI) recipients will face significant changes that may impact their benefits. According to the Social Security Administration (SSA), these changes will bring both benefits and drawbacks. One key change is the increase in Medicare Part B premiums, which may offset a significant portion of the 2026 boost. The usual monthly premium for Medicare Part B will rise by 9.7% to $202.90 from $185, affecting millions of beneficiaries. In addition, the maximum income subject to Social Security payroll tax will increase to $184,500 in 2026, up from $176,100. This change affects all employees, who are required to contribute 7.65% of their salaries to Social Security and Medicare. For early retirees and those working while collecting benefits, the earnings limit will rise to $24,480 and $65,160, respectively. However, exceeding these thresholds will result in reduced benefit payments. The Cost-of-Living Adjustment (COLA) for 2026 is expected to be 2.8%, which may not be enough to keep up with growing costs, according to a recent AARP survey. The average COLA since 2000 has been roughly 2.6%. To prepare for these changes, it's essential for Social Security and SSI recipients to understand how these updates will impact their benefits. By being aware of these changes, individuals can make informed decisions about their financial planning and retirement strategies.
