Nearly 75 million Americans are seeing bigger Social Security and SSI checks in 2026. But new rules and rising costs mean the actual gain may be smaller than expected.
The Social Security Administration (SSA) announced a 2.8% Cost-of-Living Adjustment (COLA) for 2026. The increase took effect with January payments and applies to retirement, disability, and Supplemental Security Income benefits.
For the average retiree, monthly payments rose from $2,015 to about $2,071. That’s an extra $56 per month before any deductions.
Couples who both receive benefits will see their combined average payment increase to $3,208 per month. For those who waited until age 70 to claim and earned the maximum taxable income for 35 years, the top monthly benefit is now $5,251.
People retiring at full retirement age of 67 can receive up to $4,152 per month if they maxed out their earnings throughout their career.
SSI recipients also got a raise. An eligible individual now receives up to $994 per month, while an eligible couple can get $1,491. The payment for an essential person is $498 per month.
These are federal amounts. Some states add their own supplements on top.
For people on Social Security Disability Insurance (SSDI), the average monthly check increased to $1,630. A disabled worker with a spouse and children will average $2,937 per month.
But there’s more to the story than just higher payments.
Medicare Part B premiums went up sharply in 2026. The standard monthly premium jumped to $202.90, an increase of nearly $18 from 2025. Since most beneficiaries have this deducted directly from their Social Security checks, it eats into the COLA raise.
For the average retiree, almost 32% of the $56 increase will go toward the higher Medicare premium. That leaves a net gain of only about $38 per month after the deduction.
“People were excited to see the raise, but then they saw the Medicare cost,” said one benefits counselor in a recent interview. “It’s disappointing.”
The SSA also updated key earnings and eligibility rules for 2026.
The taxable wage base rose to $184,500, up from $176,100 in 2025. This is the maximum amount of earnings subject to Social Security tax each year. Workers earning above this threshold won’t pay Social Security tax on the excess.
If you’re working while collecting Social Security before reaching full retirement age, there are limits on how much you can earn without losing benefits.
If you’re under full retirement age all year, you can earn up to $24,480 in 2026 without penalty. That’s $2,040 per month. For every $2 you earn above that, the SSA will withhold $1 in benefits.
If you reach full retirement age in 2026, the limit is higher. You can earn up to $65,160 (or $5,430 per month) until the month you hit full retirement age. For every $3 above that, $1 is withheld.
Once you reach full retirement age, there is no earnings limit. You can work and earn as much as you want without any benefit reduction.
To earn Social Security work credits in 2026, you need to make $1,890 per credit. You can earn a maximum of four credits per year with total annual earnings of $7,560.
SSI eligibility remains strict. To qualify, individuals must have less than $2,000 in countable assets, and couples must have less than $3,000. These limits have not changed in decades, and advocates continue to push for an increase.
For anyone born in 1960 or later, full retirement age is now 67 years old. You can still claim benefits as early as age 62, but your monthly payment will be permanently reduced.
There is one potential bright spot for older taxpayers. A temporary senior deduction may allow people aged 65 and older to deduct up to $6,000 from their taxable income through 2028. This could lower federal taxes on Social Security benefits for some recipients.
The SSA recommends that all beneficiaries review their my Social Security account online to see their exact payment amounts and any deductions. You can create or access your account at ssa.gov/myaccount.
Questions about benefits, eligibility, or payments can be directed to the SSA by calling 1-800-772-1213 or visiting a local Social Security office. For SSI questions, the same number applies.
Beneficiaries are encouraged to report any changes in income, living arrangements, or marital status that could affect their SSI or Social Security payments.
With inflation still a concern and medical costs rising, every dollar counts for retirees and people with disabilities. Understanding the new rules can help maximize benefits in 2026.
