Social Security card and money - Greggory Disalvo/Getty Images
As the calendar rolls over to 2026, seniors and others who will soon transition into retirement have lots to consider. Every year, the government makes a few key changes to the personal finance picture that consumers have to contend with. Factors like inflation, tax liability rules, and more cast a long shadow over the budgets of American workers.
Knowing the specifics of certain Social Security rules, and the changes they undergo in the new year, will help keep your finances in good health as 2026 kicks into full gear. Make no mistake — changes to these rules will probably impact your wallet and drawdown strategy. …
Social Security card and money - Greggory Disalvo/Getty Images
As the calendar rolls over to 2026, seniors and others who will soon transition into retirement have lots to consider. Every year, the government makes a few key changes to the personal finance picture that consumers have to contend with. Factors like inflation, tax liability rules, and more cast a long shadow over the budgets of American workers.
Knowing the specifics of certain Social Security rules, and the changes they undergo in the new year, will help keep your finances in good health as 2026 kicks into full gear. Make no mistake — changes to these rules will probably impact your wallet and drawdown strategy. However, anticipating them can help set you up for greater success as the year continues to play out. In 2026, the Social Security rules you should keep an eye on include the work credit value, the new modified adjusted gross income (MAGI) reduction, the earnings-test limit, and the annual cost-of-living adjustment (COLA).
Read more: The 15 Best Countries To Retire Outside The United States
Woman working at a desk with a laptop computer, a calculator, and papers in her hand - Fcafotodigital/Getty Images
Most Americans won’t have to worry about qualifying for Social Security benefits. The act of showing up to work throughout your adult life creates more than enough credit-earning opportunities to make the transition seamless. The best time to set up your Social Security account is actually sometime in your 30s, because most typical workers will qualify for the payouts near the start of this decade of life based on credits. Four credits are available each year, and you’re officially eligible for the benefits when you hit 40 credits.
To earn a credit, you need to hit a preset income threshold. In 2025, that figure was $1,810, so earning the full slate of credits required a worker to bank $7,240 in salary checks annually. That’s not really an issue for most, since the average salary in 2024 was just under $70,000, according to data from the Social Security Administration (SSA). However, a worker who has spent considerable time abroad or someone who works intermittently may need to start thinking a little more strategically about earning these eligibility credits.
In 2026, the target to keep clear is slightly higher. Workers will need to earn $1,890 to bank a single credit, meaning a full, four-credit year will demand earnings of $7,560, per SSA. Those who are nearing retirement and are eligible to receive benefits but haven’t yet hit the required credit threshold will want to keep a close eye on their paychecks to ensure they pass this figure.
Senior figurines standing on a calculator - Pla2na/Shutterstock
Many taxpayers who are at least 65 will see their adjusted gross income (MAGI) reduced by as much as $6,000 in 2026. In accordance with Section 70103 of the newly passed One Big Beautiful Bill Act, those 65 and older can add this tax break into their financial equation if they make up to $75,000, or $150,000 for joint filers.