Major Social Security Changes Coming in 2026

In 2026, Social Security will implement several major changes, including a projected 3.2% cost-of-living adjustment to help retirees manage inflation. The Full Retirement Age will rise to 67 for those born in 1960, completing a long-planned transition that may require some Americans to wait longer for full benefits. The Social Security Administration will begin automatically withholding up to 50% of monthly benefits from recipients identified with overpayments to recover funds, while some public sector workers may receive retroactive payments due to the Social Security Fairness Act. Despite concerns about benefit cuts, a rule prevents across-the-board reductions in 2026 even if inflation declines. Lawmakers continue to debate proposals like the Cassidy-Kaine plan, which would borrow and invest $1.5 trillion to strengthen Social Security's solvency. Retirees are also reminded of underused rules, such as the 12-month withdrawal window and eligibility for ex-spousal benefits, which can increase lifetime payouts.