National Social Security Month is a chance to review 2026 changes and your retirement planning
April is National Social Security Month, when we annually take a look at the status of retirement, receiving Social Security payments, and reaping the benefits from a lifetime of punching the time clock.
At what age will you claim Social Security benefits, or when “should” you? What will or should you have paid off, and does it matter where you live? And if you’re retiring in 2026, there are key Social Security changes to take note of.
Social Security in 2026
Effective as of January 2026, the maximum taxable earnings increased to $184,500, and the full retirement age officially becomes 67 for those born in 1960 or later.
Other 2026 changes have included:
- Social Security benefits increased by a 2.8% cost-of-living adjustment (COLA), raising average retirement checks by approximately $56 per month.
- For those handing in their resignations for full retirement age (67) in 2026, the maximum benefit is $4,152 per month.
- The earnings limit for beneficiaries younger than full retirement age increases to $24,480 per year ($2,040 per month).
- Medicare Part B Premiums are projected to rise to $202.90 per month, which may offset some of the COLA increase.
Key retirement decisions
A number of big decisions await, regardless your chosen retirement age. The biggest of these include:
At what age will you claim Social Security?
Your S.S. benefits will likely make up a large part of your retirement income. If you file at your full retirement age, you'll get the exact monthly benefit your earnings history entitles you to, but by filing earlier (age 62 is the earliest) you'll face a reduction in benefits. You can also delay benefits past full retirement age, which will increase benefits by 8% a year, up until you turn 70.
Where will you live?
Many people will retire in the same city they’ve lived and worked, but relocating has benefits. Some areas have a lower cost of living, or are warmer, or statistically friendlier for retirees. You can rate cities for affordability by housing cost, income and property taxes (which vary state to state), cost of living, and any state taxes on Social Security benefits.
What will you do?
Retirement is not for everyone. You may want to work part time, regularly volunteer for a non-profit, or even start a side business. Some retirees will refocus on their physical and mental health, a focus that may have been put on the back burner during intensive work years. Some will travel and vacation regularly. Plan ahead for what your retirement could look like, including a “Plan B” or even “Plan C.”
Know your benefits and payouts
To receive your full benefits, familiarize yourself with the ins and outs of your potential payments, and moves that could shortchange you:
1. Retiring at 62 without realizing the penalties
There is nothing wrong with retiring early and taking Social Security at the earliest possible date – if you’re ready. Your life expectancy and financial situation come into play in making such a decision -- but can cost you $1,000+ per month as opposed to waiting until you are age 70 to collect.
2. Applying before you’ve worked 35 years
When calculating your benefit, the Social Security Administration looks at your earnings history from your 35 highest-earning years, and applying before you’ve worked 35 years will significantly diminish the size of your benefit. Any “zero income” years factored in will reduce your benefit over the long term.
3. Poor communication with your spouse
You and your spouse need to be on the same page with retirement, or else your benefits could shrink. Spousal benefits are available to the spouse of a qualifying worker, and rules vary according to income disparities, whether one spouse is working and the other is not, or if one spouse is collecting benefits and the other is not. Speaking to a financial expert is critical to make sure you and your spouse are making the right moves and not decreasing your benefits.
Side hustles and smart retirement planning
Currently, approximately 74.5 million Americans receive Social Security benefits – and they’re not all “fully retired.” In 2026, the “earnings test rules” states that you can earn up to $24,480 on the side before triggering benefit reductions.
Think of your upcoming retirement in two stages – your remaining years leading-up to the age you will pull the plug on your full-time work life, and your actual retirement years:
1. Run the numbers for your current benefits by, if you haven’t already, creating a “my Social Security” account on the official Social Security website at ssa.gov/myaccount. You can view your current benefits, personalized benefit estimates, and more.
2. Let Old National be your trusted partner -- no matter what life stage you are in -- for managing your financial needs and preparing for retirement. We’ll work with you to determine the best approach based on your needs and financial goals.
Happy National Social Security Month! Let this April be the month you take charge of your financial planning and retirement.
