Particle.news
Download on the App Store

Solvency Fears Push Earlier Social Security Claims as 2026 Rules and Tax Break Shift the Math

Fresh survey results alongside near-term policy updates are reshaping how Americans decide when to start benefits.

Overview

  • Schroders reports 44% of non‑retirees plan to claim before age 67 and only 10% expect to wait until 70, citing immediate income needs and concerns about the program’s future.
  • SSA projections indicate the OASI trust fund could be depleted by 2033, with ongoing revenue covering about 77% of scheduled benefits absent congressional action.
  • Delaying past full retirement age raises monthly checks by up to 8% per year until 70, though breakeven and longevity uncertainties mean later claiming does not always yield the highest lifetime total.
  • For 2026, a 2.8% COLA is set to lift the average retirement benefit from $2,015 to about $2,071, and the earnings limits for working beneficiaries rise to $24,480 before FRA and $65,160 in the year reaching FRA, with withheld amounts recalculated at full retirement age.
  • A 2025 law created a temporary $6,000 income deduction for people 65+ through 2028, subject to phaseouts starting at $75,000 MAGI for singles and $150,000 for joint filers.