"The first big Social Security change that is coming in 2026 is one that retirees are going to be excited about. Seniors are getting a Cost of Living Adjustment (COLA) in 2026. As a result, benefits are expected to increase by 2.8%. While some of this will be offset by an increase in Medicare premiums, this raise is still larger than the 2.5% increase that retirees got in 2025."
"The COLA is intended to help retirees keep pace with rising costs. While it may not do that perfectly due to the formula that is used to calculate it, retirees will still be grateful for the extra money in their bank accounts beginning in January as they cope with price increases at the grocery store and on other everyday items."
"The second big change to Social Security will affect anyone who has not yet reached full retirement age. Full retirement age is the time when you can collect your standard benefit, and it is moving later next year. Starting in 2026, everyone who is turning 66 or who will turn 66 in the future will have a full retirement age of 67. This is up from 66 and 10 months, which is the full retirement age for people who turned 66 this year in 2025."
Social Security benefits increase with a 2.8% Cost of Living Adjustment (COLA) in 2026. Some of that increase may be offset by higher Medicare premiums, but the raise exceeds the 2.5% COLA in 2025. The COLA aims to help retirees keep pace with rising everyday costs, though the formula may not align with individual spending. Full retirement age (FRA) moves later in 2026: people turning 66 will have an FRA of 67, up from 66 and 10 months for 2025. FRA is based on birth year and resulted from 1980s reform to stabilize Social Security finances; claiming benefits before FRA reduces benefit amounts.
Read at 24/7 Wall St.
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