For tens of millions of older Americans, that Social Security deposit hitting the bank every month is what keeps the rent paid and the fridge stocked. In 2026, that check will look a little different, thanks to a new cost-of-living increase, higher Medicare premiums, and fresh tax rules aimed at seniors.
Taken together, the changes are a mixed bag. Benefits will rise by about 2.8 percent, but health costs and long-term funding worries are still hanging over the system. The big questions for 2026 are simple: How much more will you actually see, how much gets clawed back in premiums and taxes, and what do these shifts say about the future of Social Security itself?
Who qualifies for Social Security in 2026
Workers still qualify for retirement benefits in the same way as before. Most people need 40 work credits, which usually means about 10 years in jobs where they pay Social Security payroll taxes. In 2026, one credit is earned for every $1,890 of wages, up to four credits a year.
Retirement benefits can start at age 62, but claiming that early permanently reduces the monthly check. Full retirement age is 66 to 67 for most baby boomers, depending on birth year. Waiting until age 70 means a larger payment because of extra credits for delaying.
Social Security is not just a retirement program. Spouses and surviving widows or widowers can claim based on a partner’s work record, and disabled workers of any age can receive Social Security Disability Insurance if they can no longer work. Very low-income people may also qualify for Supplemental Security Income, a separate program that tops up the budgets of those with almost no savings or earnings.
How the 2026 COLA will change monthly checks
Each year, the Social Security Administration adjusts benefits through a cost-of-living adjustment, or COLA, based on inflation. For 2026, the agency has set a 2.8 percent increase, using prices from the third-quarter consumer price index for workers. Nearly 71 million Social Security beneficiaries and about 7.5 million Supplemental Security Income recipients will see higher payments.
On average, a retired worker’s benefit will rise by about $56 a month, bringing the typical check to a little over $2,060. In simple terms, someone getting $1,500 today will see that go up to roughly $1,542 in January. The exact figure depends on a person’s own earnings history, so no two households will see the same bump.
For many older adults, that extra money helps cover basics that never seem to get cheaper, like groceries, rent, and utility bills. At the same time, surveys from groups such as AARP show that most retirees feel a 3 percent-style increase does not fully keep up with their real-life costs, especially healthcare. Reporters at Business Insider have also documented thousands of seniors who still work or rely on food aid even after recent COLA raises.
New tax breaks and how Social Security is taxed
Even with higher checks, many retirees will not get to keep every dollar, because Social Security income can be taxable. The Social Security Administration and the Internal Revenue Service say that up to 85 percent of benefits may be subject to federal income tax for higher-income households. The key factor is “combined income,” which adds together other income, tax-exempt interest, and half of a person’s Social Security benefits.
The thresholds have not changed for 2026. Individuals with combined income below $25,000 and couples below $32,000 will not owe federal tax on their Social Security benefits. Above those levels, a portion of benefits becomes taxable, while need-based Supplemental Security Income remains tax-free. For some retirees living only on modest checks, that means no federal tax bill at all.
A new twist is coming from tax law. Under President Donald Trump’s One Big Beautiful Bill Act, seniors 65 and older can claim an extra $6,000 deduction from 2025 through 2028, on top of the regular standard deduction and the usual age-based add-on. That allows a qualifying single filer to shield up to $23,750 of income in 2025, and a married couple to protect as much as $46,700, which in many cases will sharply reduce or erase the tax owed on Social Security benefits.
Policy analysts point out that this tax relief, while welcome for many households watching every penny of their electric bill, slightly lowers the stream of tax money that flows back into Social Security and Medicare. Nonpartisan groups reviewing the law say it could move the projected trust fund depletion date forward by a year if lawmakers do not replace that revenue.
Medicare premiums and healthcare costs are climbing
Most people who receive Social Security also enroll in Medicare, and for many their Medicare Part B premium is taken directly out of their monthly check. In 2026, the standard Part B premium will rise to $202.90 a month, up $17.90 from 2025, an increase of almost 10 percent. The annual Part B deductible will also go up, from $257 to $283.
Medicare has several parts that work together. Part A covers hospital stays and most people pay no premium for it, while Part B covers doctor visits and outpatient care, and Parts C and D are private plans that bundle extra benefits or prescription drugs. The Centers for Medicare & Medicaid Services has also announced higher hospital deductibles and coinsurance amounts for 2026, meaning more out-of-pocket costs when people need care.
The main Medicare open enrollment period runs every year from October 15 to December 7, when people can switch plans for the following January. For 2026, experts say it will be especially important to compare options, because new rules will change drug caps and coverage for some treatments even as premiums rise. At the end of the day, the plan you pick will help decide how much of that COLA raise you actually feel after doctor bills and pharmacy visits.
A fund under pressure: what the future looks like
Behind these yearly adjustments sits a bigger concern: the long-term health of Social Security’s trust funds. In their 2025 report, the program’s trustees projected that the combined retirement and disability funds will be able to pay full benefits until 2034. After that point, incoming payroll taxes would cover only about 81 percent of promised benefits if Congress does nothing.
Recent laws have nudged those dates in different directions. The Social Security Fairness Act expanded benefits for some workers who had been penalized under older rules, and the new senior tax deduction reduces revenue from taxes on benefits, both of which add strain. At the same time, officials stress that Social Security will not simply vanish; checks would shrink, not disappear, unless lawmakers agree on new funding or benefit changes.
For now, 2026 is about practical trade-offs for retirees and people with disabilities. A modest raise, somewhat higher Medicare premiums, and a larger tax deduction for many seniors will show up on real bank statements and real grocery receipts. The main official information has been published by the Social Security Administration in its 2026 COLA fact sheet and by the Internal Revenue Service in its guidance on the One Big Beautiful Bill Act.
