Changes to Social Security payments: what they are and how they will affect me
COLA, Medicare premiums and taxable income limits will all shift next year, affecting millions of retirees and disability recipients.
Month after month, the Social Security Administration (SSA) sends out different types of benefits – including payments to retired and surviving workers, such as children, spouses, widows, widowers or parents of a deceased beneficiary. It also covers payments from the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs.
These payments fluctuate each year based on several factors, meaning that in 2026 some Americans will see their benefits increase while others may see smaller checks. Here’s what’s changing.
Cost-of-living adjustment (COLA) increase
Every year, the Social Security Administration calculates a cost-of-living adjustment (COLA) to reflect inflation. The increase is tied to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
To determine the adjustment, the SSA compares CPI-W data from the third quarter of the previous year with the same period of the current year – that is, July, August and September. If the index rises, benefits go up accordingly.
The official 2026 COLA will be announced on October 24, and the higher payments will take effect with January checks. According to the latest estimate from The Senior Citizens League, next year’s COLA could be 2.7%, raising the average monthly payment for retired workers by about $54 – from $2,008 to $2,062.
Taxes and Social Security income limits
To qualify for the maximum possible monthly benefit, workers must meet specific conditions – including paying Social Security payroll taxes on the maximum taxable earnings for their 35 highest-earning years. Like the COLA, this income cap changes annually and is linked to the national average wage index, which tends to increase over time.
For 2025, only the first $176,100 of income is subject to these taxes. The 2026 threshold hasn’t been confirmed yet, but analysts expect it to exceed $180,000.
Medicare Part B premiums
Each year, the Centers for Medicare & Medicaid Services (CMS) announce new premiums for the different parts of Medicare. Part B premiums are automatically deducted from monthly Social Security checks – meaning some beneficiaries could see smaller net payments, even if their gross benefits rise due to the COLA.
The 2026 amount hasn’t been finalized, but early projections suggest the monthly Part B premium will top $200.
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