Every
October, the Social Security Administration (SSA) makes adjustments to Social
Security programs to keep pace with inflation. These adjustments then go into
effect the following January. The most significant of these annual changes are
typically the Cost-of-Living-Adjustments (COLA), the annual tax caps and
earning limit increases.
The purpose of these increases is to
ensure that the buying power of Social Security and Supplemental Security
Income (SSI) benefits is not eroded by inflation.
The
Social Security Administration (SSA) increased the COLA for 2026 to 2.8% in
addition to several other increases in benefits. The increase in COLA for 2026
is higher than last year's increase of 2.5%, and lower than the 10-year average
COLA increase of 3.1%.
Another change applies to the income
subject to Social Security taxes which are capped each year (called maximum
taxable earnings). Maximum earnings subject to Social Security taxes for 2026
is $184,500, which is a significant increase from $176,100 in 2025. Experts
expect to see the earnings cap continue to increase as it's the primary tool
that Social Security has used to increase funding into the program.
Social Security benefits might change if you are working while
collecting benefits and have not yet hit your full retirement age. If you plan
to work after you elect Social Security, you need to be aware of the potential
earnings limit.
If
your income exceeds the annual earnings limit while collecting benefits (before
you reach your full retirement age) your Social Security benefit will be
reduced for the remainder of the year in which you exceeded that limit.
However, the income that is withheld will be paid out once you reach full
retirement age.
It
is important to note that investment income does not count toward your annual
earnings limit; the only income that counts is income earned by working for a
company or as a self-employed person.
At
Telhio, our valued partnership with Silvur enables us to keep you informed
about your Social Security benefits. By partnering together, Telhio and Silvur can provide new member benefits for Telhio members age
50+. Silvur provides best-in-class retirement education and tools to help you
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Security, taxes and more.
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The content in this article is true and accurate as of 11/6/2025.
