The Social Security Administration (SSA) has issued official updates that will govern its programs through 2026. These changes affect benefit payments, eligibility requirements, and associated cost structures for millions of beneficiaries in the United States.
The adjustments will directly impact recipients of retirement, survivor, disability (SSDI), and Supplemental Security Income (SSI) benefits. Changes in Medicare premiums, frequently deducted from Social Security checks, also represent a significant factor in the financial outlook for beneficiaries.
Application of the cost-of-living adjustment (COLA)
The Cost-of-Living Adjustment (COLA) for 2026 will be set at 2.8%. This increase will be applied to Social Security, SSDI, and SSI benefit amounts beginning in January 2026. For SSI beneficiaries, the adjusted payment will begin on December 31, 2025. The COLA is calculated based on data from the Consumer Price Index known as CPI-W.
Applying this percentage translates into an estimated increase in the average monthly benefit for a retiree, from approximately $2,015 to $2,071. This represents an increase of nearly $56 per month. The SSA has provided post-COLA average benefit estimates for various beneficiary categories, including retired couples, widows/widowers, and disabled workers with families.
These projected figures are national averages, and individual amounts may vary significantly depending on each person’s work and income history.
Changes to Medicare Cost Structures
A substantial portion of SSA beneficiaries have automatic deductions for Medicare Part B coverage. By 2026, the standard monthly premium for this part will increase to $202.90, representing an increase of $17.90, or 9.7%, from the 2025 level. This higher premium expenditure could offset a portion of the increase attributable to the COLA in net payouts.
The annual deductible for Medicare Part B will also be adjusted, rising to $283, an increase of $26. As for Medicare Part A, which covers hospital services, the deductible per benefit period will be set at $1,736, an increase of $60. People who do not qualify for premium-free Part A will face monthly costs of $311 or $565, depending on their coverage history.
For higher-income taxpayers, additional premium amounts known as IRMAA (Income-Related Monthly Adjustment Amount) will apply. These additional charges, based on the modified adjusted gross income reported two years prior, will range from $284.10 to $689.90 per month for Part B coverage. The SSA determines these levels using specific income tables.
Income Limits for Working Beneficiaries
The rules known as the Retirement Income Test will remain in effect through 2026, with adjustments to their thresholds. These rules affect those who receive retirement benefits but continue working before reaching Full Retirement Age (FRA). FRA is 67 for individuals born in 1960 or later, and its phased implementation continues.
For individuals under the FRA year-round, the annual income limit is set at $24,480, equivalent to $2,040 per month. If income exceeds this threshold, the SSA will withhold $1 in benefits for every $2 of earnings above the limit. During the year in which the individual reaches their FRA, the limit increases to $65,160 annually ($5,430 per month) for the months leading up to their birthday month, with a withholding of $1 for every $3 in excess.
From the exact month the FRA is met, income limits no longer apply, and no withholdings are made on employment income. It is important to note that the benefits withheld under this test are not lost indefinitely, but will be recalculated to provide a monthly increase once the beneficiary reaches the FRA.
Work Thresholds for SSDI Benefits
The Social Security Disability Insurance (SSDI) program establishes a Substantial Activity Income (SGA) level to assess beneficiaries’ earning capacity. By 2026, the monthly SGA threshold will be set at $1,690 for non-blind individuals and $2,830 for legally blind individuals. Income that persistently exceeds these amounts may trigger a review of eligibility for disability benefits.
Additionally, the program includes a Trial Work Period (TWP) that allows beneficiaries to test their ability to work without immediately losing benefits. The income level that begins a month of TWP in 2026 will be $1,210. TWP rules allow for nine trial months within a 60-month period, during which the beneficiary can earn above the SGA level without affecting their status.
Are you ready to enjoy your retirement benefits? You can apply for retirement benefits four months before you want your benefits to begin. Learn more: https://t.co/tyCNfhgoxn pic.twitter.com/H2xRlkgetE
— Social Security (@SocialSecurity) December 28, 2025
Changes to the SSI program
The federal Supplemental Security Income (SSI) program, which serves elderly people, people with disabilities, and those with limited resources, will also update its payment parameters. The maximum standard monthly federal payment will increase to $994 for an eligible individual, $1,491 for an eligible couple, and $498 for an “essential person.”
The resource limits, which are eligibility requirements, will remain unchanged at $2,000 for an individual and $3,000 for a couple. These thresholds exclude certain assets, such as a primary residence and a car. The program maintains an income exclusion for students under 22, which will be $2,410 per month by 2026, up to an annual maximum of $9,730.
