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]