Three new changes are coming to the Social Security System, and they’re aimed directly at retirees and those who are about to retire. There are three in total: the cost-of-living adjustment (COLA) and new rules for those who work while receiving benefits.
Every year, the Social Security Administration (SSA) reviews its rules to adapt them to current realities, prices, inflation, life expectancy… This time, the changes aim to maintain the system’s balance (because it’s necessary), although they also create some uncertainty.
Retiring at 67
Here’s the first big change: from now on, everyone born in 1960 or later will have to wait until age 67 to receive 100% of their benefits. And don’t be surprised if it keeps increasing in the coming years…
You can still retire early, starting at age 62, but 30% will be deducted from each monthly payment, so you’ll have to consider whether it’s worth it or not.
The system also offers a “reward” if you hold out until age 70: it adds 8% for each year you delay retirement after 67. But clearly, not everyone can keep up that pace. It has to be your decision, depending on whether you feel strong and willing enough.
Is it worth retiring early or waiting?
The eternal question. And there’s no single answer, there are as many answers as there are workers. If you’re healthy and don’t need the money right away, it might be wise to wait. But as we said, if your body is already asking for rest or you need the income, retiring early may be the best option, even if the check is a bit smaller.
A new cost-of-living adjustment (COLA)
The second change has to do with the annual cost-of-living adjustment (COLA). This increase is calculated based on inflation, and its goal is to ensure retirees don’t lose purchasing power as prices rise. It’s not yet known what it will be for 2026, but it’s estimated to be between 2 and 2.5%. A bit small, but that means the economy is finally stabilizing.
The goal is for beneficiaries not to have to choose between living, eating, or taking necessary medication.
New rules for working while collecting benefits
The third change is good news for those who still want (or need) to keep working. Until now, retirees under full retirement age who worked and earned above a certain amount had part of their benefits temporarily withheld. But that limit will now increase, allowing people to work and earn more without facing penalties.
Once you reach full retirement age, there are no income limits, and if anything was withheld before, the SSA will return it over time.
More flexibility for a new reality
More and more older adults are choosing to keep working (mainly out of necessity, no one likes being 69 and still flipping burgers…).
What do all these changes mean?
It means you need to review your monthly finances, plan for all possible scenarios, and check whether you can retire early… or if you’ll have to work until 70. Especially if you’re close to retirement, it’s time to do the math before making a decision!
Social Security remains the financial backbone of retirement for millions of people, but we know it’s not at its strongest right now, so it’s best to prepare for whatever may come