Changes are coming to Social Security in January 2026, as reported in the article “3 Social Security Changes Coming in January 2026: What You Need to Know” from yahoo! finance. Here’s what you’ll need to know for next year.
The change most Social Security recipients wonder about is the annual Cost-of-Living Adjustment, more commonly referred to as COLA. The Social Security Administration (SSA) typically announces this change in mid-October. This change occurs when the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the current year equals or is lower than the average CPI-W for the same period in the previous year. One advocacy group representing seniors believes that next year will see a 2.6% benefit increase, based on the latest data.
The full retirement age (FRA) will increase to 67 in 2026. For many years, the FRA was 65; then, in 1983, legislation was passed, moving it to 67 for boomers born in 1960 or later. When 2026 arrives, the period of gradual increases will come to an end. One thing to note: the age when you can take Social Security is still 62, and the age to maximize Social Security benefits is still age 70. Take benefits early, however, and you’ll receive less every month.
In 2026, there may be an increase in the higher maximum taxable earnings. This applies to working taxpayers, not retirees. The maximum, also referred to as the ‘contribution and benefit base,’ is the maximum amount of annual earnings subject to FICA taxes. There’s no maximum for taxable earnings for the part of FICA payments that fund Medicare.
This change may happen because the maximum taxable earnings limit is based on the national average wage index, which might not change from 2025 to 2026. For a historical perspective, the average wage index was the same in 2009, 2010, 2011, 2015, and 2016, so this is not so unusual.
Another change most retirees will see is the new additional standard deduction for all Americans age 65 and older. The deduction can be as much as $6,000 for a single taxpayer and $12,000 for married senior couples who file jointly. There are a few caveats to be aware of:
The $6,000 per person tax deduction is reduced by 6% of the amount of MAGI exceeding income limits. There’s no bonus for singles with MAGI above $175,000, and married couples with incomes above $250,000 don’t receive any bonus.
Reference: yahoo! finance (Aug. 3, 2025) “3 Social Security Changes Coming in January 2026: What You Need to Know”
