January Jan is the time of year when lots of families discover whether their Social Security deposit is bigger or smaller, or it has just changed some other way than anticipated.
The real-world questions are usually similar with almost 71 million Social Security beneficiaries subject to the automatic updates of 2026: What was changed in the gross benefit, what was deducted prior to the deposit being received, and what rules apply to individuals currently working or newly on Medicare, or receiving disability benefits?
Others are easy inflation indexing. Others rely on timing, such as year of birth, when full retirement age hits, or whether or not the Medicare premiums are deducted out of the check, meaning that two individuals may receive identical headline update, yet have different net deposits.
1. The 2.8% COLA which increases most monthly benefit amounts
The cost-of-living adjustment hikes benefits by 2.8 in 2026. To an average retired worker, that would raise the estimated monthly benefit by 56, that is, 2,015 to 2,071. Survivor benefits, family benefits and Social Security Disability Insurance are also subject to the same COLA with the number of dollars varying depending on work history and type of benefit received.
COLAs are automatic, in that formula is bound to the measures of inflation. Real-life effects are not so even, since the taxes, Medicare deductions, and work-related withholding may vary what will actually be deposited in the bank account. Individuals who are recipients of the Supplemental Security Income normally receive the inflation-adjusted amount by the end of December instead of January, a calendar feature that may influence end-of-year budgeting.
2. The net increase that has the potential to go down following Medicare Part B
Part B of Medicare premiums are deducted directly off of the Social Security of many enrollees, and a premium increase can quietly undercut the seemingly large COLA increase. The 2026 Part B deductible and premium part B is 202.90 and a deductibles of 283 respectively, as per the Part B 2026 premium and deductible.
The hold harmless clause protects some of the beneficiaries in the case where the premium additions made by Part B would otherwise cause the Social Security benefit to decline annually. According to one executive in the industry: When your Social Security benefit actually goes down because of your Medicare Part B premiums, you have what is called, hold harmless. This is not exactly the case with all people as many people who receive an income related surcharge, those who are new to Medicare, or those who pay their premium directly and not withholding are not covered.
3. The increased amount of the earnings-test of the individuals earning benefits as they work
In cases of individuals who take out retirement benefits before the age of full retirement and continue to work, the retirement earnings test may cause temporary withholding. In 2026, the limit at the under full retirement age will be 24,480 annually: above that, benefits will be paid without profit over the limit, which is 1 to every 2. When an individual attains full retirement age, the amount increases to $65,160 where one will be taxed 1 dollar to every three dollars earned after that amount.
The monthly timing is important as only the earnings up to the month full retirement age will be counted in the same year. The withheld benefits are not lost permanently by the fact that once full retirement age is attained, Social Security recomputes the benefit to give credit to those months when the withheld payments were made, and the earnings test is now not applicable.
4. The moving retirement age target, both with and without the first-of-month rule
The full retirement age varies according to year of birth, and the phase-in period to the age of 67 is still influencing choices in 2026. Individuals born in the year 1960 or later on have the full retirement age of 67 and those born in 1959 are on the last steps before they attain the same.
Some of these little-known facts will be important in the planning: Social Security follows a special rule when dealing with individuals born at the beginning of the month on the first day of the month the agency counts the birthday as being in the prior month when it comes to determining the full retirement age and benefit calculations. This is the same case with January 1 birthdays, which are considered as the previous year due to this reason.
5. The maximum benefits payable in terms of increased ceiling is delayed
The maximum monthly benefit will increase by 2026 to 5,251 in the case of individuals who have long work histories, earn high amounts, and delay their claims to 70. This number is more a ceiling than a common result: it normally involves years of income at or even over the taxable maximum and the decision to wait as long as possible.
The phenomenon of delayed claiming may also impact on survivor income in household where one of the spouses is likely to outlive the other. According to one planner who advised AARP, it is best to wait to claim as late as age 70 so that the widow/widower will receive maximum benefit.
6. The new work-credit price tag on individuals who continue to build eligibility
The higher bar will be slightly more challenging to workers who have not accrued a sufficient number of credits to receive benefits under Social Security by 2026. A single credit is now costing 1,890 in wages or self-employment income, not to mention that it takes 7,560 in such income to receive the maximum 4 credits per year. Most individuals require 40 credits in order to be eligible to receive retirement benefits among many others in a lifetime.
Credits make a person eligible, but they do not dictate the amount of the retirement check once a person is fully insured. The amount of benefits received is based on the records of prior earnings and therefore, proper earnings records and consistent reporting is significant to those workers in late career, in self employment or during intermittent employment.
7. The disability earnings levels that influence continued eligibility and the attempts of return-to-work
In the case of disability beneficiaries, a significant amount of earnings is known as Substantial Gainful Activity, and it is one of the most important income levels considered during the eligibility check. According to the 2026 changes to social security, SGA increases to $1,690 per month to non-blind beneficiaries and $2,830 per month to blind beneficiaries in 2026, depending on the SSA.
The other figure that is frequently employed in the work planning is the amount of Trial Work Period, which is raised to 1,210 monthly. The increased thresholds may be beneficial to individuals conducting a trial to work back, and they merely add weight to the monitoring of monthly earnings when overtime, bonuses, or variable schedules may drive the income along a curve.
8. The higher taxable wage base that changes payroll withholding for high earners
For workers still paying into Social Security, the maximum earnings subject to the Social Security portion of payroll tax rises to $184,500 in 2026. Earnings above that amount are not taxed for Social Security, though Medicare taxes continue without an earnings cap.
This wage base shift can affect take-home pay for higher earners early in the year until withholding stops after the cap is reached. For some late-career households, it also intersects with decisions about part-time work or consulting especially when benefits have already started and the retirement earnings test is in play.
January’s deposit is often the first clue that a rule change mattered personally. The most reliable way to reduce surprises is to separate the gross benefit change from the net deposit: first confirm the new benefit amount, then review what was withheld for Medicare and any work-related rules that apply.
Small timing details birth date rules, the month full retirement age arrives, and whether premiums are withheld often explain why two people with the same COLA do not see the same “raise.”
