Overview
- January 2026 payments will reflect a 2.8% cost-of-living increase, lifting the average retired worker’s monthly benefit to about $2,071.
- The full retirement age reaches 67 for people born in 1960 or later, and claiming at 62 triggers roughly a 30% permanent reduction in benefits.
- The Social Security taxable maximum rises to $184,500 in 2026, increasing payroll taxes on higher earners.
- Medicare Part B premiums are set to climb to $202.90 in 2026, reducing the net benefit of the COLA for many recipients.
- Lawmakers have proposed switching to a CPI‑E-based COLA or adding a temporary $200 monthly supplement through July 2026, but the measures remain pending as long-term solvency concerns persist.