Retirement Account Contribution Limits - The contribution limit for individual retirement accounts (IRAs) will increase to $7,500 in 2026, with a catch-up contribution limit of $1,100 for individuals aged 50 and older [2] - For Roth IRAs, the income limit for contributions will rise to between $153,000 and $168,000 for singles and heads of household, and between $242,000 and $252,000 for married couples filing jointly [3] - The contribution limit for 401(k), 403(b), 457 plans, and the federal Thrift Savings Plan will increase to $24,500, with an $8,000 catch-up for those aged 50 and older [4] Health Savings Accounts (HSAs) - The annual contribution limit for HSAs will increase to $4,400 for individuals and $8,750 for family coverage in 2026, with an additional $1,000 catch-up contribution for those aged 55 or older [6] Social Security Benefits - The Social Security Administration will implement a 2.8% cost-of-living adjustment (COLA) for 2026, resulting in an average increase of $56 per month for approximately 75 million retired seniors and disabled workers [8]

Core Points - Social Security is a crucial financial support system for nearly 74 million older Americans, with many relying on it for their daily expenses [1][2] - The program is primarily funded through payroll taxes, and qualification rules will remain unchanged in 2026 [2][3] - Beneficiaries can expect an increase in monthly payments due to a 2.8% cost-of-living adjustment, translating to approximately $60 more per month in 2026 [6][7] Eligibility and Benefits - Individuals must be at least 62 years old to enroll, with full benefits available at ages 66 or 67, depending on birth year [3][4] - Monthly benefits typically range from $800 to $3,000, influenced by income and filing age [4][5] - Supplemental Social Security is available for low-income individuals earning less than $2,000 a month, while Social Security Disability provides support for those unable to work due to disability [5] Cost-of-Living Adjustments - The 2.8% increase in benefits for 2026 is based on inflation data from the third quarter, reflecting a trend of adjustments tied to the consumer price index [6][8] - Previous years saw higher percentage increases during the pandemic, but adjustments have stabilized around 2% to 3% since 2023 [8]

Core Insights - Significant changes to the Social Security program are expected in 2026, including a cost-of-living adjustment (COLA) and an increase in maximum benefits, but there are also concerns about future benefit reductions and purchasing power loss [1] Group 1: Positive Changes - Social Security recipients will see a 2.8% COLA in 2026, translating to an average increase of approximately $56 per month for retired workers [2] - The maximum benefit amount will rise to $5,251 per month in 2026, up from $5,108 in 2025, with the same eligibility requirements [3] - Earnings test limits for those working while collecting benefits will increase, allowing retirees under full retirement age to earn more before facing benefit reductions [5][6] Group 2: Negative Changes - The maximum taxable earnings limit will increase from $176,100 in 2025 to $184,500 in 2026, requiring higher salaries to qualify for maximum payments [4] - Despite annual COLAs, Social Security benefits have lost about 20% of their purchasing power from 2010 to 2024 due to inflation [7] - Future benefits may be cut by nearly 20% within the next decade, as the Social Security Administration has been depleting its trust funds to maintain full benefit payments [8] - The trust funds are projected to be exhausted by 2034, at which point only about 81% of scheduled benefits will be covered by income sources [9]