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3w ago

Social Security’s 2026 COLA Takes Effect With New Limits and January Payment Dates

Many retirees will see smaller net increases as higher Medicare Part B premiums reduce monthly checks.

An older man sits on his sofa with a thoughtful look on his face.
A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. The Department of Government Efficiency (DOGE) is reportedly aiming to reform and downsize the SSA with office closures, cutbacks on phone services and new rules requiring in-person visits for some prospective beneficiaries to register. (Photo by SAUL LOEB / AFP) (Photo by SAUL LOEB/AFP via Getty Images)
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Overview

  • A 2.8% cost-of-living adjustment is now in force, lifting the average retirement benefit to about $2,071 for roughly 71 million recipients, with SSI paid on Dec. 31 and January payments scheduled for Jan. 14, 21, and 28 based on birth dates.
  • The 'hold harmless' rule may shield some beneficiaries from a net drop only if Part B premiums are deducted from Social Security and they are not subject to IRMAA.
  • Earnings test thresholds rose: beneficiaries under full retirement age can earn up to $24,480 before $1 is withheld for every $2 over, and in the year of reaching full retirement age the threshold is $65,160 with $1 withheld for every $3 over.
  • Wage-indexed updates include a higher taxable wage base of $184,500, a work-credit amount of $1,890, and new Substantial Gainful Activity limits of $2,830 per month for blind individuals and $1,690 for non-blind disabled workers.
  • Trustees project the retirement trust fund can pay scheduled benefits only until about 2033—or 2034 if combined with disability funds—without congressional action to address the shortfall.