Social Security is the financial lifeline for millions of Americans. It is not just a government program; for many, it is the only means of income.
Many of these deficits are solely dependent on Social Security benefits, while for others, these benefits may be a second source of income. Either way, for recipients, these checks can significantly impact their monthly budget.
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That’s why, if there is any change in these checks, beneficiaries must remain aware and vigilant. These changes are important for even those people who are not yet retired but will soon be. Social Security is an essential part of financial stability, and since it can directly affect someone’s check and long-term financial planning, changes in the funds are important to keep track of.
The Social Security Administration is expected to announce a series of updates on October 15th. These changes could have major implications for both workers and retirees.
There are five major changes to watch out for:
1. The 2026 Cost-of-Living Adjustment (COLA)
Social security benefits are adjusted every year based on the previous year’s inflation rate. This is called the cost-of-living adjustment, or COLA. In 2025, the beneficiaries saw a 2.5% increase in the benefits, which helped with the rising costs of goods and services.
For 2026, recipients hope for a bigger adjustment and increased benefits due to a higher inflation rate and tariffs. This change will determine how far the benefits will go for millions.
2. The 2026 Wage Cap
Payroll taxes largely fund Social Security. However, there is an upper limit to it. In 2025, the wage cap for the funding was $176,100. This means that any amount above this would not be subject to social security tax.
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In 2026, the cap is expected to rise, which will result in higher taxes for people who earn more. This is primarily being done to avoid emptying Social Security coffers.
3. A New Maximum Monthly Benefit
Since the Social Security taxes are only applicable to the income under the wage cap, there is a maximum amount one can receive from Social Security.
In 2025, the highest monthly benefit one can receive is at full retirement age after 35 years of tax payment: $4,018. This number is expected to increase in 2026, thus offering those who earn and pay more a better chance to collect more.
Those who choose to delay their benefits also earn more.
4. Higher Earnings-Test Limits
Retirees who claim their Social Security before reaching their full retirement age and still keep working are subject to an earnings test. There is an upper limit to how much one can earn to withdraw the social security amount with deductions.
The limit for 2025 is $23,400. This was extended to $62,160 for those reaching their full retirement age that year.
If anyone exceeded that amount temporarily, their monthly benefits would be reduced.
These thresholds may rise in 2026, and thus, retirees will be able to earn more without facing any deductions.
5. Updated Work Credit Requirements
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Workers are required to earn credits to claim Social Security benefits. Currently, the required number of credits is 40 over their whole career. A person can earn a maximum of 4 credits in a year. This means a person can earn more, but only four will be calculated.
To simplify, in 2025, one credit equals $1,810 in earnings. The required amount is likely to increase in 2026, making it difficult for part-time workers to qualify for social security benefits.
Certain social security changes occur every year. These can have a major impact on the lives of workers and retirees. That’s why the October 15th deadline can have a significant impact on everyone’s lives.
