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The new 2.8% cost-of-living adjustment doesn’t just increase Social Security checks, starting with January payments — it also boosts thresholds related to the maximum retirement benefit.
The maximum Social Security benefit for workers who claim at full retirement age will increase to $4,152 per month in 2026, up from $4,018 per month in 2025, following the 2.8% COLA.
The Social Security Administration detailed the change on Oct. 24 as part of its announcement about the 2.8% cost-of-living adjustment in 2026 for Social Security and Supplemental Security Income benefit payments. The news, originally slated for Oct. 15, was delayed due to the federal government shutdown.
Other changes for 2026 in the release included a boost to the taxable earnings cap and higher earnings test thresholds for older adults who claim benefits while they are still working.
Workers who receive the $4,018 maximum full retirement age benefit in 2025 would have earned the taxable maximum in each year starting at age 22, according to the Social Security Administration.
The 2.8% benefit boost for 2026 is expected to push the average monthly Social Security benefits for all retired workers up to $2,071 per month in 2026, up from $2,015 per month in 2025.
The average benefit for disabled workers will move to $1,630 in 2026, up from $1,586 in 2025.
Estimated average monthly Social Security benefits for 2026
| Before 2.8% COLA | After 2.8% COLA | |
| All retired workers | $2,015 | $2,071 |
| Aged couple, both receiving benefits | $3,120 | $3,208 |
| Widowed mother and two children | $3,792 | $3,898 |
| Aged widow(er), alone | $1,867 | $1,919 |
| Disabled worker, spouse and one or more children | $2,857 | $2,937 |
| All disabled workers | $1,586 | $1,630 |
Source: Social Security Administration
Full retirement age is the point at which workers can receive 100% of the benefits they’ve earned. Beneficiaries who wait longer to claim may receive enhanced benefits. For every year past full retirement age, up to age 70, that a retiree waits to claim, they may receive an 8% increase in benefits.
Beneficiaries can claim retirement benefits as early as age 62 but take a permanent benefit cut for doing so.
Workers who collect benefits may face earnings test
Individuals under full retirement age who collect retirement benefits and continue to work face new thresholds next year for how much they can earn before their benefits are reduced. The Social Security Administration calls this a retirement earnings test.
The reductions can be a “rude wake-up call” for beneficiaries who claim retirement benefits early and are unfamiliar with the rules, according to Bill Shafranksy, a certified financial planner and senior wealth advisor at Moneco Advisors in New Canaan, Connecticut.
“They not only could face a massive reduction to their benefit, but sometimes I’ve seen it where the benefit actually zeros out entirely,” Shafranksy said.
Importantly, the benefits that are withheld are added to monthly benefits once the beneficiary reaches full retirement age.
In 2026, those workers who are under full retirement age may earn up to $24,480 per year, or $2,040 per month. For every $2 in earnings above that limit, $1 in benefits will be withheld. In 2025, the threshold is $23,400 per year, or $1,950 per month.
Workers who reach full retirement age in 2026 will have a higher threshold that year — $65,160 per year, or $5,430 per month. For every $3 in earnings above that limit, $1 in benefits will be withheld. In 2025, that threshold is $62,160 per year, or $5,180 per month.
