For more than 53 million retired workers in the U.S., Social Security is not extra income — it’s a financial lifeline. Gallup surveys over the past two decades show that between 80% and 90% of retirees depend on Social Security to cover their daily expenses.
Since its creation nine decades ago, the program has evolved, now covering not only retired workers but also people with disabilities and survivors of deceased workers. And once again, major changes are on the way.
On September 30, 2025, Social Security will undergo a permanent change ordered by President Donald Trump. Alongside that, five more updates are nearly certain to take effect in 2026.
Trump’s Executive Order Ends Paper Checks
Earlier this year, President Trump signed an executive order titled “Modernizing Payments To and From America’s Bank Account.” This order eliminates all paper-based federal payments, including Social Security checks, effective September 30, 2025.
This move is designed to cut costs and reduce scams. A paper check costs the government about $0.50 to issue, compared to less than $0.15 for an electronic transfer. With more than 500,000 people still receiving paper checks, the change is expected to save over $2 million each year.
Beneficiaries still using paper checks must switch to direct deposit or the Direct Express debit card to continue receiving payments.
1. Social Security Beneficiaries Will Get a Raise in 2026
The most anticipated change is the annual cost-of-living adjustment (COLA), which will be announced on October 15, 2025. COLA is a yearly “raise” meant to help beneficiaries keep up with inflation.
According to forecasts by The Senior Citizens League and independent analyst Mary Johnson, the 2026 COLA is expected to be 2.7%. For the average retired worker, this means about $54 more per month.
However, the Medicare Part B premium is projected to jump 11.5% to $206.20 in 2026. Combined with high housing and medical costs, many retirees may still lose purchasing power despite the COLA.
2. Maximum Benefits for High Earners Will Rise
The maximum monthly benefit at full retirement age in 2025 is $4,018. This figure is expected to increase again in 2026, though the exact amount is unknown.
Only about 2% of beneficiaries qualify for the maximum benefit, which requires:
Claiming benefits at full retirement age
At least 35 years of work history
Hitting or exceeding the taxable earnings cap every year in those 35 years
3. High Earners Will Pay More in Payroll Taxes
In 2025, wages up to $176,000 are subject to the 12.4% payroll tax. Earnings above that are exempt. This cap rises most years based on the National Average Wage Index (NAWI), and with a 2.7% COLA expected, the cap is virtually guaranteed to increase in 2026.
This means the top 6% of earners will pay more payroll taxes next year.
4. Higher Withholding Thresholds for Early Filers
Retirees who claim Social Security before full retirement age face benefit withholding if they earn above certain limits. In 2025, the rules are:
$1 withheld for every $2 earned above $23,400 for those not reaching full retirement age in 2025.
$1 withheld for every $3 earned above $62,160 for those reaching full retirement age in 2025.
These thresholds will rise in 2026, allowing early filers to earn more before losing benefits.
5. Disability Income Thresholds Will Increase
For 2025, disability recipients can earn up to $1,620 per month (non-blind) and $2,700 per month (blind) without losing benefits. These thresholds, known as the substantial gainful activity limits, typically increase each year with wages and inflation. In 2026, they are expected to climb again.
A Hidden $23,760 Social Security Bonus?
Many retirees don’t realize there are strategies to legally boost lifetime Social Security income. Some financial experts estimate that most Americans overlook benefits worth up to $23,760. Maximizing your retirement strategy could make a big difference in long-term financial security.
Social Security is about to go through one of its biggest shifts in decades. From ending paper checks in September 2025 to upcoming changes in COLA, benefits, taxes, and thresholds in 2026, nearly 70 million beneficiaries will be affected.
While a raise is expected next year, higher Medicare costs and inflation could still eat into that increase. For retirees, planning ahead and staying informed will be key to making the most of their Social Security benefits.
