Social Security 2026: Final Retirement Age Hike to 67, 2.8% COLA and New Pension Rules You Need to Know by January

Published November 18, 2025

As 2026 draws closer, today’s news cycle is making one thing very clear: retirement rules are about to change in ways that will affect almost every future retiree. In the United States, Social Security’s full retirement age will reach 67 for the first time, a 2.8% cost-of-living adjustment (COLA) is locked in, and key earnings and tax thresholds are moving higher. At the same time, Brazil is tightening its own public pension rules, raising the minimum retirement age again in 2026. ^[1]

Below is a clear breakdown of what changed today in the news, what’s coming on January 1, 2026, and what it could mean if you’re planning to retire in the next few years.

1. Today’s headlines: 2026 becomes a pivotal year for retirement

Several major stories published on November 18, 2025 all point to the same message: 2026 is a turning point for retirement systems.

Full retirement age in the U.S. hits 67 – 24/7 Wall St. highlights that Social Security’s full retirement age (FRA) will rise to 67 in 2026 for anyone born in 1960 or later, changing when millions can claim an unreduced benefit. ^[2]
Three major Social Security changes – The Daily Express US details that 2026 will bring a 2.8% COLA, higher earnings limits for people who work while claiming early benefits, and a higher cap on wages subject to Social Security payroll tax. ^[3]
Anxiety is driving Americans to claim early – Employee Benefit News reports that 44% of non-retirees now expect to file for Social Security before 67, and just 10% plan to wait until 70, reflecting deep concern about the program’s long-term finances. ^[4]
Brazil tightens its pension rules for 2026 – A new article from Brazilian outlet Click Petróleo e Gás explains that in 2026 the minimum retirement age under Brazil’s progressive age rule rises to 59 years and 6 months for women and 64 years and 6 months for men, with the same 30- and 35-year contribution requirements. ^[5]

Taken together, today’s coverage underscores a global trend: governments are slowly pushing retirement benefits later and asking workers to shoulder more of the risk.

2. U.S. Social Security: full retirement age hits 67 for the first – and last – time

Final step of a 40-year phase‑in

A deeper look at today’s articles and recent coverage shows that the FRA change in 2026 is not new legislation, but the final step in a schedule passed back in 1983. That law gradually moved FRA from 65 to 67 to help shore up Social Security’s finances. ^[6]

Here’s what happens in 2026:

For anyone born in 1960 or later, FRA = 67.
That means people turning 66 in 2026 will not get their full benefit that year; they must wait until 2027. ^[7]
This is the last scheduled increase in FRA under current law. After 2026, it stays at 67 unless Congress changes the rules again. ^[8]

Why FRA matters so much

FRA is the age at which you can claim your primary insurance amount – the baseline Social Security benefit calculated from your 35 highest earning years. Claiming before or after FRA permanently changes your monthly check. ^[9]

Claim early (as soon as 62): your benefit is reduced for life.
Claim at FRA: you get 100% of your calculated benefit.
Claim after FRA up to age 70: you earn delayed retirement credits, increasing your benefit each month you wait.

Because FRA is rising:

The penalty for claiming at 62 is bigger for people with an FRA of 67 than it was for those whose FRA was 65 or 66.
The window to earn delayed credits shrinks. A 24/7 Wall St. analysis notes that those with an FRA of 67 can earn at most three years of delayed credits (ages 67–70), whereas those with an FRA of 65 once had five. ^[10]

In plain language: for future retirees, the bar for getting a “full” check is higher than ever.

3. Three big Social Security changes in 2026: COLA, earnings test and tax cap

Today’s Daily Express US piece and an official update from the Social Security Administration spell out three major changes that kick in for 2026. ^[11]

3.1. A 2.8% COLA: modest raise, mixed feelings

The Social Security Administration has officially announced a 2.8% cost‑of‑living adjustment (COLA) for benefits paid in 2026. ^[12]

Key details:

Roughly 75 million Social Security and SSI beneficiaries will see their payment adjusted. ^[13]
The average retired worker’s benefit will increase by about $56 per month, starting with the January 2026 check. ^[14]
SSI recipients see their increase a bit earlier, at the end of December 2025. ^[15]

Advocates and beneficiaries are split. Some welcome any increase, but others worry that 2.8% still lags behind real‑world costs for housing, groceries and healthcare, a concern highlighted in today’s coverage. ^[16]

3.2. Higher earnings limits for people who claim early and keep working

If you claim Social Security before full retirement age and continue to work, the retirement earnings test may temporarily reduce your benefits.

According to today’s reporting: ^[17]

Social Security withholds $1 in benefits for every $2 you earn above a yearly limit if you’re under FRA for the full year.
In the year you reach FRA, it withholds $1 for every $3 above a higher limit, then stops the test entirely once you hit FRA.

The 2026 numbers:

The higher annual earnings limit for people reaching FRA that year rises from $62,160 in 2025 to $65,160 in 2026 (about $5,430 per month). ^[18]

While the specifics for the lower threshold aren’t always front‑page news, the key takeaway is that the earnings limits are increasing – which can allow some early claimers to work a bit more without triggering as much withholding.

3.3. The taxable maximum jumps to $184,500

The taxable maximum – the cap on wages subject to the Social Security portion of FICA – will increase from $176,100 in 2025 to $184,500 in 2026. ^[19]

What that means:

Workers and employers each pay 6.2% Social Security tax on wages up to $184,500 in 2026 (plus 1.45% each for Medicare, for a total of 7.65% per side). Self‑employed workers pay the combined 15.3%. ^[20]
High earners will see more of their income taxed, which can slightly boost their future benefits but also increases their payroll tax bill.
Workers earning below the cap won’t see a change in the Social Security tax rate itself – only the maximum earnings subject to it are changing.

4. Financial pressure in the background: could the retirement age rise to 70 next?

Alongside the confirmed 2026 changes, there’s growing debate about what comes next for Social Security.

A Motley Fool analysis, re‑reported by Sharewise this weekend, notes that the Old‑Age and Survivors Insurance (OASI) trust fund is projected to be depleted within eight or nine years if Congress doesn’t act. Letting that happen could trigger an automatic 20% cut in benefits for retirees. ^[21]

One of the most controversial ideas periodically floated in Washington think‑tank reports and policy circles is to raise the full retirement age to 70 over time as a solvency fix. ^[22]

If that ever happens (nothing concrete is on the books right now):

People would have fewer years receiving benefits, especially those with shorter life expectancies.
The lifetime value of Social Security would fall for many workers, even if monthly checks looked similar.
Physically demanding workers and people in poorer health would likely be hit hardest, because they are less able to keep working into their late 60s.

For now, the FRA stays capped at 67 after 2026. But today’s coverage is a reminder that the program’s long‑term finances are still under pressure, and future reforms — whether tax increases, benefit changes or both — remain very possible. ^[23]

5. Today’s Brazilian pension news: minimum retirement age rises again in 2026

Retirement rules aren’t just tightening in the United States. Today’s Click Petróleo e Gás article focuses on Brazil’s INSS (National Social Security Institute) system and a new step in the country’s 2019 pension reform. ^[24]

New minimum ages under the progressive age rule

Starting in 2026, for the popular progressive age‑plus‑contribution retirement route:

Women will need 59 years and 6 months of age and 30 years of contributions.
Men will need 64 years and 6 months of age and 35 years of contributions. ^[25]

In 2025, those thresholds were still 59 and 64 years, respectively, with the same contribution times. The new step simply adds six months to the age requirement while leaving the contribution period unchanged. ^[26]

Rush to retire before the rule tightens

Because these changes are part of an automatic transition schedule, they didn’t surprise Brazilian workers — but they are having real‑world effects:

Many insured workers nearing retirement are running calculations now to decide whether they qualify under 2025’s gentler rules.
The article notes a surge of people considering whether to submit applications before year‑end to lock in the current minimum ages. ^[27]

For Brazilians, the message is similar to that in the U.S.: if you’re close to retirement, the exact month you file can make a big difference.

6. Why more people are claiming early – even as the rules push retirement later

The tension between later retirement ages and earlier claiming is at the heart of today’s U.S. coverage.

The Employee Benefit News article published this morning highlights that: ^[28]

44% of non‑retirees expect to file for Social Security before age 67.
Only 10% plan to wait until age 70, despite the significantly higher monthly benefit that delayed claiming can provide.

What’s driving this?

Solvency fears: constant headlines about trust fund depletion dates — 2033 for OASI and 2034 for the combined funds, according to the 2025 Trustees’ Report — are making people worry benefits might be cut later. ^[29]
Savings gaps: survey data cited in today’s piece show many Americans feel under‑prepared and expect to lean heavily on Social Security and modest savings to cover basic living costs. ^[30]
Psychological comfort: some workers prefer a smaller, “guaranteed” check now rather than gambling that Congress will protect full benefits in the 2030s.

Experts interviewed in these stories argue that, for many households, waiting longer still makes financial sense — but that requires enough savings, good health, and confidence in the system to bridge the gap.

7. What you can do if you expect to retire around 2026

Every situation is different, and you’ll want personalized advice, but today’s news suggests a few practical steps if you’re approaching retirement age.

7.1. If you’re a U.S. worker born in 1960 or later

Confirm your FRA is 67.
Log into your my Social Security account and check your estimated benefits at 62, 67 and 70. ^[31]
Run “what if” scenarios.
Ask:
- Can you cover expenses if you delay filing to 67 or 70?
- How would working part‑time interact with the retirement earnings test before FRA?
Check how the 2.8% COLA affects you.
Multiply your current benefit (or estimate) by 1.028 to get a rough 2026 figure, then compare it to your budget. ^[32]
Watch the taxable maximum if you’re a high earner.
If you make more than about $176,100 today, expect more of your income to be subject to Social Security tax in 2026 when the cap rises to $184,500. ^[33]

7.2. If you’re in Brazil and close to retirement

Check your age and contribution time as of December 31, 2025.
If you’ll meet the current minimum ages (59 for women, 64 for men) and contribution requirements this year, talk to a specialist about applying under 2025 rules. ^[34]
Understand the 2026 rules.
If you won’t qualify until 2026 or later, plan around the higher minimum ages: 59 years and 6 months (women) and 64 years and 6 months (men), with the same contribution periods. ^[35]
Factor in other reforms.
Recent measures tightening oversight and cross‑checking financial information mean beneficiaries must be more careful about how income is reported. ^[36]

7.3. Consider professional advice

Because the optimal claiming strategy depends on your health, marital status, savings, and tax situation, many analysts quoted in today’s articles suggest working with a qualified financial planner to model different retirement ages and income streams. ^[37]

8. Quick FAQ: Social Security and retirement changes for 2026

Will Social Security’s full retirement age rise again after 2026?
Not under current law. 2026 is the final scheduled increase: for anyone born in 1960 or later, full retirement age is 67 and stays there unless Congress passes new legislation. ^[38]

How much bigger will my Social Security check be in 2026?
On average, benefits will be about 2.8% higher, which works out to roughly $56 a month more for the typical retired worker, though your exact increase depends on your individual benefit amount. ^[39]

Is Social Security really “running out of money”?
The OASI trust fund is projected to deplete its reserves in 2033, and the combined OASDI funds in 2034. After that, ongoing payroll taxes would still cover around 80% of scheduled benefits if Congress does nothing, implying a roughly 20% across‑the‑board cut. ^[40]

Could the retirement age go to 70?
Some policy proposals and analyses mention raising the retirement age to 70 as a way to close the funding gap, but no such change has been enacted. It would likely be politically contentious because it reduces lifetime benefits and hits physically demanding workers hardest. ^[41]

What changes in Brazil’s retirement rules in 2026?
Under one of the main transition rules, the minimum retirement age rises to 59 years and 6 months for women and 64 years and 6 months for men, while contribution requirements remain 30 and 35 years. Many Brazilians are considering filing under 2025 rules if they qualify, to avoid the higher age requirement. ^[42]

Important: This article is for general information only and is not personalized financial, tax, or legal advice. Before making any retirement decisions, consider consulting a licensed professional who can review your specific situation.

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