Social Security Benefits Set to See Key Changes in 2026

WASHINGTON — Approximately 75 million Americans will notice adjustments to their Social Security and Supplemental Security Income payments starting in January 2026. The Social Security Administration (SSA) has announced an average increase of about $56 per month for retirement benefits, driven by a 2.8% cost-of-living adjustment (COLA).

This adjustment reflects changes in inflation and aims to keep benefits in line with the current economic environment. Despite the increase, factors such as higher Medicare premiums may impact the actual amount beneficiaries receive.

The SSA is set to provide a one-page statement beginning on December 1, detailing the new benefit amounts and any applicable deductions. Online access to this information will be available by December 12 for those with an SSA account.

In addition to the COLA increase, new legislation passed earlier this year introduces a potential tax deduction for seniors aged 65 and over of up to $6,000. However, this deduction phases out for individuals earning more than $75,000 and couples making over $150,000.

Andrew Herzog, a certified financial planner, noted the complexity of the senior deduction. He indicated that the actual savings can vary significantly based on individual circumstances.

The new Medicare Part B premium for 2026 will rise to $202.90 monthly, marking one of the highest increases in the program’s history, according to analyst Mary Johnson. This affects retirees whose income fell below specific thresholds.

It is essential for beneficiaries to consider these changes as they plan their finances for the coming year. The SSA continues to encourage individuals to review their withholdings from Social Security to manage tax liabilities more effectively.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to ensure benefits reflect today’s realities,” said SSA Commissioner Frank J. Bisignano.

In preparation for the 2026 changes, beneficiaries are advised to utilize the upcoming enrollment period to evaluate their Medicare plans and ensure their coverage meets their healthcare needs while minimizing costs.