Significant updates are on the horizon for Social Security recipients starting in 2026, reflecting both policy changes and administrative directives. Among the most notable changes is the move to eliminate paper checks entirely, necessitating all recipients to shift to electronic payment methods. This transition aligns with a broader federal government effort to streamline operations, following an executive decision initiated by former President Donald Trump.
Recipients can expect a cost-of-living adjustment (COLA) in 2026, projected at an increase of 2.8%, equating to roughly $52 more per month for the average beneficiary. However, experts caution that this boost might quickly be offset by simultaneous increases in Medicare premiums. For context, the COLA adjustment in 2025 was 2.5%, marking the smallest increase in three years.
Additionally, the full retirement age, which dictates the age at which individuals can claim full Social Security benefits, will increase to 67 for those born in 1960 and later. Presently, individuals can begin claiming benefits at 62, but doing so results in reduced monthly payments compared to waiting until reaching the full retirement age or beyond.
The criteria for earning “work credits”—necessary to qualify for Social Security upon retirement—will also see adjustments. These credits hinge on meeting specific earnings thresholds yearly, with a maximum of four credits available per year. While the 2026 credit value remains unspecified, looking at 2025’s model, earning four credits required a minimum of $7,240 in annual earnings.
A noteworthy tax-related change affects the wage cap, setting the income level at which Social Security taxes are imposed. For example, in 2025, the wage cap was set at $176,100, meaning those earning above this threshold contributed the same amount in Social Security tax as those making significantly higher incomes. The precise wage cap for 2026 remains to be announced, but it’s likely to see an increase.
Tennessee stands to be affected significantly by these changes, considering over 1.5 million residents currently benefit from Social Security. While this prior context underscores the revisions, further detailed announcements are expected from the Social Security Administration by October 15, 2025, outlining the full scope of modifications to the program.
Despite these changes, the overarching aim is to modernize and improve the Social Security system’s efficiency and sustainability for future beneficiaries.