Although Social Security has been around for nearly a century, the program’s rules can change from year to year. Usually, these changes are positive.
For example, through 2026, Social Security benefits will receive a 2.8% cost of living adjustment (COLA). This is slightly larger than the 2.5% increase COLA beneficiaries will receive in early 2025.
In 2026, Social Security’s earnings test limits will also increase. This means beneficiaries who have not reached full retirement age can earn more before they risk having their benefits withheld.
But there are two changes coming to Social Security in 2026 that may not be viewed as positive changes. In fact, if you’re still working, both changes could take a financial toll on you, so you might want to prepare now.
The money to fund Social Security doesn’t appear out of thin air. Social Security relies on payroll taxes to stay afloat.
But some workers don’t pay Social Security taxes on all of their income. The Social Security Administration sets a salary cap each year, and earnings above that threshold are not taxed to fund the program.
In 2025, the salary cap for Social Security taxes is $176,100. In 2026, this number will rise to $184,500. This means that high earners will lose more income to the tax.
To be clear, this isn’t necessarily a case of “booing the rich.” In some parts of the country, $184,500 is not a lot of money. So having to pay more taxes is really painful.
If you’re in this situation, one thing you can do to soften the blow is to increase your contributions to a traditional 401(k) or IRA to protect more of your income from taxes. If you’re eligible to contribute to a health savings account in 2026, this is another strategy you can employ. But be sure to check your insurance coverage to confirm your plan is compatible.
In most cases, people qualify for Social Security benefits in retirement by working and paying into the system. There are some exceptions, such as spousal benefits, which do not require personal income history. But if you want to qualify for Social Security on your own, you’ll need to accumulate 40 work credits over your lifetime, with a maximum of 4 credits per year.
