Social Security Rules Get A 2026 Rewrite — What It Means For Your Wallet

Benzinga · 1d ago

New rules are set to be implemented in the Social Security program in 2026, bringing changes to benefits, cost-of-living adjustments (COLA), taxes, and Medicare. These changes are expected to affect millions of older Americans who depend on the program.

What Happened: The Social Security continues to be the largest social safety net program in the U.S., delivering monthly payments to nearly 74 million individuals.

The amount received in monthly checks is determined by the income earned during one’s working years. The rules for qualification, which remain unchanged as of January, require beneficiaries to be at least 62 years old to enroll.

However, enrolling prior to full retirement age could lead to smaller checks and potential benefit deductions for those still employed.

As per the report by Insider, beneficiaries usually receive between $800 and $3,000 a month, depending on income and filing age. The Social Security Administration also provides benefits for low-income Americans and those with disabilities, regardless of age.

In 2026, beneficiaries will see an increase of about $60 in their monthly payments, due to the program’s annual cost-of-living adjustment. This 2.8% increase is based on third-quarter inflation data. However, this minor raise could push some older adults over the qualifying limit for other aid programs.

Social Security income is typically taxed, with Americans potentially paying taxes on up to 85% of their Social Security payments. However, individuals earning less than $25,000 and couples earning less than $32,000 will not have their benefits taxed.

Also Read: Social Security Payments to Rise 2.8% Next Year, But Most Seniors Say It’s Not Enough to Match Inflation

Under President Donald Trump‘s One Big Beautiful Bill Act, taxpayers aged 65 and older can claim up to $6,000 in addition to their normal standard deduction. This rule will remain in effect until 2028.

Most Social Security beneficiaries are also enrolled in Medicare, which will not change in the new year. However, beneficiaries can expect higher out-of-pocket costs as premiums for Medicare Part B plans will increase by about 10%, reports the outlet.

The Social Security fund in America is projected to become insolvent in the mid-2030s. While this doesn’t mean checks will cease entirely, retirees could see smaller benefit amounts unless Congress secures additional funding.

Why It Matters: The upcoming changes to Social Security will have significant implications for millions of Americans. The increase in monthly payments could provide some financial relief, but it could also disqualify some from other aid programs.

The potential insolvency of the Social Security fund in the mid-2030s underscores the need for Congress to secure more funding to ensure the continued provision of benefits to retirees.