3 Key Things Every Retiree Must Know About Social Security in 2026

Group 1 - Social Security is a crucial source of retirement income for millions, and understanding its rules and changes is essential for retirees [1] - In 2026, Social Security benefits will receive a 2.8% cost-of-living adjustment (COLA), which is slightly higher than the 2.5% increase in 2025, but may not significantly help due to rising costs [2][3] - Medicare Part B costs are increasing, which will reduce the impact of the COLA on retirees' monthly benefits [3] Group 2 - Tariff policies may contribute to rising prices, potentially causing the 2.8% COLA to lag behind inflation, although they could also lead to lower inflation if they slow down spending [4] - Retirees relying heavily on Social Security should consider backup plans, such as reducing expenses or seeking part-time work, in case the COLA does not provide sufficient support [5] Group 3 - Seniors can now earn more income without risking withheld benefits once they reach full retirement age, allowing for greater financial flexibility [6] - The earnings-test limit for those under full retirement age has increased to $24,480 in 2026, up from $23,400 in 2025, meaning that earnings above this threshold will result in $1 in benefits being withheld for every $2 earned [8]