Social Security benefits will rise 2.8 percent in 2026, bringing the average monthly check for a retired worker to $2,071 from $2,015, according to the Social Security Administration. The cost-of-living adjustment (COLA) also raises the earnings limits that determine whether working beneficiaries see their benefits reduced.
Quick Facts
- Average retired worker benefit increases by about $56 monthly starting in January 2026
- Earnings limit for those under full retirement age rises to $24,480 per year
- Earnings limit in the year you reach full retirement age increases to $65,160 per year
- Nearly 71 million Social Security beneficiaries receive the 2.8% adjustment
The COLA is based on the Consumer Price Index from the third quarter of 2024 through the third quarter of 2025. For retirees still working, the earnings test limits how much they can earn without triggering a reduction in benefits.
How Earnings Limits Work in 2026
If you’re under your full retirement age for all of 2026, you can earn up to $24,480 annually without losing benefits. For every $2 you earn above that limit, Social Security withholds $1 in benefits.
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The year you reach full retirement age, the limit jumps to $65,160, but the earnings test only applies to income earned before the month you reach that age. Once you hit your full retirement age, you can earn any amount without penalty.
The earnings limits adjust annually based on national wage trends. These increases reflect inflation and wage growth in the economy. The long-term solvency of Social Security remains a separate policy concern, as the program faces projected challenges beyond 2026.
Sources
- Social Security Administration — 2026 COLA fact sheet with benefit amounts, earnings limits, and tax thresholds
- Social Security Administration — Official press release confirming 2.8% increase for nearly 71 million beneficiaries
