Social Security’s 2.8% COLA will take effect in January.
After this change, the maximum Social Security benefit that a person claiming full retirement age can receive will be $4,152 per month.
People who wait longer than full retirement age to receive benefits could receive more.
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The Social Security Administration recently announced that program beneficiaries in 2026 will receive a 2.8% cost of living adjustment, or COLA. Recipients will see this in their monthly checks starting in January. incoming payment.
This increase also affects several other aspects of Social Security, including the maximum possible Social Security payment. Below is how much in 2026 a retiring employee can receive each month and what you should do to get the maximum benefit.
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I won’t keep you waiting. The maximum amount that in 2026 can receive at full retirement age (FRA) will be $4,152 per month, up from $4,018 in 2025. That’s $49,824 a year in inflation-protected retirement income.
Technically, people who reach full retirement age in 2026 won’t be quite 67. More precisely, all of 1959 the retirement age for persons born is 66 years and 10 months; 1960 or later, the FRA rises to 67.
Of course, not everyone claims Social Security at full retirement age. Most people start collecting Social Security at age 62, which is as early as possible. Others choose to wait until they reach age 70, the point at which they no longer need to increase their payments while waiting. And many people claim that their benefits lie between these two ages…but let’s take a quick look at the two extremes.
Qualified employees who in 2025 retire at age 62 can receive a maximum of $2,910 per month or $34,920 per year. Those who wait until they turn 70 in 2026 to receive the benefit could receive a maximum of about $5,251 a month, or $63,012 a year. As you can see, the age at which you choose to start taking Social Security can make a big difference.
Spoiler alert: Very few American workers will qualify for maximum Social Security benefits.
In order to receive the maximum Social Security benefit, three things must be true.
First, you’ll need to have worked at least 35 years with a social security company. Most people who work full-time throughout their adulthood can check that box.
Second, you’ll need to earn more than the maximum annual income subject to payroll tax (which is separate from income tax) over 35 separate years. Unlike most company pension plans, which only consider a few of your highest earning years, Social Security is calculated based on your 35 highest earning years, adjusted for inflation. They don’t have to be consecutive years, but you must exceed the maximum in 35 different years.
Given the context, 2025 the maximum amount of income you can pay Social Security payroll taxes is $176,100. Money earned above this amount is not subject to FICA, but it also does not affect what you will eventually be able to collect from your retirement program.
As you can imagine, most people don’t make that much. In fact, only about 6% of Americans earn more than the FICA taxable maximum in any given year, so you can assume that a much smaller percentage earn it over 35 separate years.
Third, to really max out Social Security, you’ll need to wait until age 70 to receive benefits. If you wait beyond your full retirement age, your benefit will increase by 8% per year, but you will not be able to accumulate more Delayed Retirement Credits after age 70. It’s also worth noting that this percentage is prorated monthly, which is 0.67% per month, so even if you only wait a few extra months to receive your payout, it can have a noticeable impact.
The vast majority of American workers do not qualify for the maximum Social Security benefits. But the good news is that the 2.8% COLA applies to everyone. According to the agency’s latest update, the average retired worker receives $2,008 a month in Social Security, and that is expected to increase to about $2,064 after the COLA takes effect. So when January rolls around, you should see an increase in your Social Security earnings.
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Here’s what The Motley Fool originally posted on the maximum possible Social Security payout at ages 62, 67 and 70 in 2026.
