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Are You Ready for the 2026 Social Security Retirement Age Increase? What to Do Before December Ends
- David Peters
- Dec 19, 2025
- 4 min read
As we approach the end of 2025, now is a perfect time to revisit your retirement plan. With major changes from Social Security Administration (SSA) set to take effect in 2026, making decisions before the New Year can help you avoid surprises, and position you for a better retirement.
What’s Changing in 2026 And What You Should Know Now
Full Retirement Age (FRA) Hits 67 for Many
For people born in 1960 or later, the full retirement age, the age at which you become eligible for full Social Security benefits, reaches 67. That final increase marks the end of a decades-long phase-in.
2026 Cost-of-Living Adjustment (COLA): Small but Real Benefit Bump
The SSA has announced a 2.8% COLA for 2026, which means most Social Security retirement checks will rise by roughly $56/month starting January 2026.
New Earnings Limits If You Work While Receiving Benefits
If you retire but continue working before reaching FRA, the 2026 earnings limit rises to $24,480. If you reach FRA in 2026, the limit is $65,160 for the months prior to hitting FRA, income above those thresholds could temporarily reduce your Social Security checks.
Why the 2026 Social Security Retirement Age Matters for Reviewing Your Retirement Strategy
You’ll likely get your 2026 benefit notice soon — many Social Security beneficiaries begin receiving updated statements in December. This gives you a clear starting point for planning.
Resetting goals before the new year draws near — with both a new FRA and COLA coming in 2026, now is a smart moment to adjust your retirement timeline, savings targets, and 401(k) withdrawal strategies.
Tax planning & year-end adjustments — for small-business owners or entrepreneurs, December is often the time to evaluate income, self-employment tax, retirement-account contributions, and projected withdrawals considering new Social Security rules.
What Peters Financial & 401(k) Services Recommends
Pull up your Social Security statement once you receive the 2026 COLA notice.
Use it to re-estimate your retirement income starting next year.
Revisit your “target retirement age.”
If you were planning to retire at 65–66, under the old assumptions, you may consider working to 67 to maximize your benefit.
Run multiple scenarios.
Compare the impact of claiming at 62, at 67, or even later (up to age 70), especially if you expect to continue working or rely on 401(k)/other savings.
Factor in potential earnings while retired.
If you plan to keep working (full- or part-time), track income carefully, especially under the new 2026 earnings limits.
Lean harder on 401(k) and personal savings.
Given the increased FRA and modest COLA, Social Security may not be enough. A diversified retirement plan that includes savings, investments, and possibly part time work could give you more flexibility and security.
Your December 2025 Action Checklist
Action | Why It Matters |
Watch for your SSA 2026 benefit notice | Gives you the updated base numbers for planning |
Re-run retirement income projections | 2026 changes could alter your expected benefits |
Review 401(k) savings and planning for 2026 | Supplements Social Security and increases flexibility |
Model different retirement scenarios (age 62, 67, 70) | Helps you pick the optimal claiming age for your situation |
Consider work + retirement balance | Especially important if you plan to work while claiming benefits |
The Bottom Line
With 2026 changes to retirement age, benefit rules, and Social Security payments coming into effect, and December 2025 right around the corner, there’s no better time to take a fresh look at your retirement plan. For clients of Peters Financial & 401(k) Services, especially small business owners, entrepreneurs, and families nearing retirement — now’s the moment to recalibrate.
Schedule Your December Retirement Planning Review
The 2026 Social Security rule changes are coming fast, and reviewing your strategy now could make a meaningful difference to your long-term financial picture.Whether you’re nearing retirement, planning, or navigating retirement while working, we’re here to help.
Book your strategy session today and make sure you’re ready for a confident 2026.
About the Author:
David Peters, CPA, CFP, ChFC, CLU, CPCU, CGMA, is the Founder and Owner of Peters Professional Education (petersprofessionaleducation.com) and Peters Tax Preparation & Consulting, PC. David Peters is also registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He regularly teaches courses in accounting, finance, insurance, financial planning, and ethics throughout the United States, and regularly contributes regularly to various professional publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures.
Required Disclosure:
The content presented above is for informational purposes only, is general in nature, and is not intended to and should not be relied upon or construed as financial, investment, or estate planning advice. This does not constitute an offer to sell or a solicitation to buy any security, investment or planning product. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please consult with a financial advisor to assess your individual situation.
Financial and investment advisory services offered through Peters Financial LLC. Brokerage and custodial services offered through Charles Schwab Co. Inc., member FINRA and SIPC. Peters Financial LLC and Charles Schwab Co. Inc. are not affiliated. David Peters also offers tax services through Peters Tax Preparation & Consulting, PC. Peters Tax Preparation & Consulting, PC is not affiliated with Peters Financial LLC and clients or prospective clients are never obligated to use Peters Tax Preparation & Consulting, PC. as part of any financial planning or investment management services offered by Peters Financial LLC.