Social Security payments will see these 3 changes in 2026: What to know about updates to benefits

Social Security benefits will increase by 2.8% in 2026 for 75 million Americans. This cost-of-living adjustment (COLA) aims to offset rising costs, but the impact might be limited. The average monthly payment will increase by $56, based on a current average of $2,071. This adjustment is part of Social Security's effort to reflect current economic conditions. Another key change involves the maximum earnings subject to Social Security tax, increasing to $184,500. Working seniors collecting Social Security before full retirement age face adjustments. In 2026, those under full retirement age who work see their benefits potentially reduced. The earnings limit before penalties increase slightly in 2026 compared to 2025. This change allows individuals to earn a bit more without penalty. These adjustments aim to balance economic realities with the benefits provided.