“Which is larger, smaller, or just different than expected: the January deposit?
For most households, Social Security is not a side income stream but rather the core monthly check that keeps budgets steady. With over almost 71 million Social Security beneficiaries seeing automatic adjustments in 2026, January turns into a practical moment to recheck assumptions on what comes to the bank, what gets withheld, and what rules change once earnings, age, or disability status enters the picture.
Some of those are simple inflation adjustments. Others depend on individual circumstancessuch as those who work and claim benefits at the same time, or who are nearing full retirement age, or whose Medicare premiums are deducted from their Social Security. Which means two people can get the “same” COLA yet see different net changes:
1. 2.8% COLA raises most monthly checks
The 2026 cost-of-living adjustment raises Social Security benefits by 2.8%. For retirees, that equates with an average monthly benefit increasing from $2,015 to $2,071, or about $56 more per month. The increase broadly includes most people receiving retirement, survivor, family, and Social Security Disability Insurance benefits, though the dollar impact varies depending on each person’s earnings history and benefit type. The Social Security Administration has aligned the COLA to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers-the so-called CPI-W-over a defined period.
That makes the adjustment automatic, but it does not make it uniform in real-life effect. Taxes, Medicare deductions, and work-related withholding can change what actually lands in a checking account. One timing detail does make a difference for some households: individuals who receive SSI receive their first inflation-adjusted payment at the end of December, rather than during January. For many families who support an older adult or a relative with a disability, that calendar nuance can make a difference in year-end planning.
2. The “top” monthly benefit increases for high earners who delay
Starting in January, the maximum Social Security benefit increases again for those people with high lifetime earnings who wait to claim late. The new maximum monthly benefit increases to $5,251 a month from $5,108 last year, but it applies only under specific circumstances generally, a long career of earnings at or above the taxable maximum and claiming at age 70.
For readers who like clear benchmarks, this number is less a typical expectation than a ceiling that illustrates how strongly Social Security rewards delayed claiming for people with consistently high wages. It can also serve as a reminder that “maximum” depends on both earnings history and timing, not simply on reaching a certain age.
3. Earnings test limits change for people working while collecting
Social Security retirement earnings test, which may temporarily reduce the benefits of early filers who continue to work, has an annual earnings limit of $24,480 for individuals below full retirement age in 2026. Benefits are withheld at a rate of $1 for every $2 of earnings that exceed this limit. People who will turn the full retirement age in 2026 have a higher threshold-$65,160-with withholding of $1 for every $3 earned above that amount.
Significantly, only earnings before the month full retirement age is reached count in that year, which can matter for people planning to retire midyear or cut back gradually. As the SSA explains, benefits withheld under the earnings test are not “lost.”After full retirement age, the agency recalculates the benefit to give credit for months when payments were withheld and the earnings test no longer applies. The specific mechanics are described in the SSA guidance on receiving benefits while working.
4. Full retirement age remains based on birth year
The full retirement age is not a number unique and universal. It varies based on birth year, reflecting a phase-in that began after the 1983 law raised it over time. For those born between 1943 and 1954, it is 66. For those born in 1960 or later, it is 67, with transitional ages for those in between. That matters because full retirement age is the point at which an individual can claim an unreduced retirement benefit based on the Social Security formula.
Claiming earlier-permanently reduces the monthly amount-and waiting past full retirement age increases payments through delayed retirement credits, up to age 70. For couples in which one spouse anticipates relying on survivor benefits, the decision might be given much greater weight. “Waiting to [claim] as late as age 70 maximizes the survivor benefit to the widow/widower,” one planner explained to AARP. The quote underscores that timing affects not only the worker’s check, but also potentially the surviving spouse’s long-term income as well.
5. Disability earnings limits increase under Substantial Gainful Activity
For those collecting disability benefits, one pivotal number is the Substantial Gainful Activity threshold-the amount a beneficiary can earn in a month to be considered still eligible under the program rules. For 2026, the SGA monthly earnings limit is $2,830 for blind beneficiaries and $1,690 for non-blind beneficiaries, per the SSA’s 2026 Social Security changes fact sheet.
These higher limits can make a big difference for beneficiaries trying to maintain part-time work, test a return to the workforce, or manage fluctuating hours. They also raise the stakes for accurate reporting and careful tracking of monthly income, especially when overtime, bonuses, or seasonal work could push earnings higher than expected.
6. Medicare Part B increases may reshape the net “raise”
Even with a COLA, some retirees notice that their net check does not rise by the same amount-or rises less than anticipated-because Medicare premiums come out first. The standard Medicare Part B premium for 2026 is $202.90, up from $185 and the Part B deductible increases to $283. Those figures come from the federal Medicare premium release covering the 2026 Part B premium and deductible. Most enrollees have Part B premiums subtracted directly from Social Security. That means a higher premium cuts into part of that COLA sometimes enough that the month-to-month difference feels minimal.
Some beneficiaries are protected through the “hold harmless” rule, which prevents a person’s Social Security benefit from falling year over year wholly due to increased Part B premiums, assuming certain conditions are met (including having premiums deducted from Social Security and not paying income-related surcharges). As one industry executive explained: “If your Medicare Part B premiums cause your Social Security benefit to actually decrease, you are protected by what is known as ‘hold harmless.’” These do not include protections for everyone, including many higher-incom beneficiaries subject to IRMAA, people new to Medicare, and those who pay premiums separately rather than through Social Security withholding.
7. The taxable wage base increases for workers who are still paying into the system
For those still working, January also means another key number: the maximum amount of earnings subject to the Social Security portion of payroll tax. For 2026, the taxable maximum rises to $184,500 from $176,100. That changes how much Social Security tax is withheld from paychecks for bigger earners-and how much employers match. While the Wellbeing Whisper audience often focuses on benefit checks, this wage base matters for late-career workers because it can influence take-home pay and the total taxes paid over the year.
For some, it also coincides with decisions about scaling back, consulting, or shifting to part-time work-choices that interact with the earnings test if benefits have already started. January’s changes hit differently depending on whether someone is still building credits, already collecting, managing Medicare deductions, or trying to work without triggering withholding. For many households, the practical takeaway is simple: confirm the new gross benefit, then confirm the net deposit after deductions and any work-related withholding, because the gap between the two is where most surprises appear.”
