The 7 Biggest Changes To Social Security This Year

"Top of mind each year for retirees is the annual cost-of-living adjustment. Yes, there's a substantial COLA increase this year: 2.8%. Last year's increase was 2.5%. The current rate of inflation is 2.7%, but the vast majority of senior citizens said in an AARP survey that a 3% COLA wouldn't be enough to cover their expenses. For the average retiree, the 2.8% increase will mean an additional $56 monthly, according to the Social Security Administration (SSA)."

"The full retirement age (FRA) is an important number when making Social Security decisions. When you hit FRA, you can claim your full benefits. If you claim earlier, your benefits are reduced. In November 2026, the FRA becomes 67 for anyone born in 1960 or later. That's up from the previous FRA of 66 years and 10 months. For now and the foreseeable future, the FRA will stay at 67 years because this was the maximum Congress agreed to during 1983 reforms."

In 2026, Social Security benefits receive a 2.8% cost-of-living adjustment, adding about $56 monthly and raising the average benefit to $2,071. Medicare Part B premiums rise 9.7%, from $185 to $202.90 per month, often deducted from Social Security checks and reducing net benefits. The full retirement age becomes 67 in November 2026 for people born in 1960 or later, up from 66 years and 10 months, and will remain at 67 under current law. The Social Security tax rate stays 12.4% for most workers while the amount of income subject to the tax is adjusted for 2026.

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