Social Security Calculator 2026: COLA, Benefits & Claiming Age
Estimate your 2026 Social Security benefits with the 2.8% COLA. Compare claiming at 62, 67, or 70. Includes earnings test limits and Medicare deductions.
Featured Snippet: What is the 2026 Social Security COLA?
2026 Cost-of-Living Adjustment
- 2026 COLA:2.8% increase
- Average Benefit Increase:$56 per month
- New Average Benefit:$2,071 per month (up from $2,015)
- Effective Date:January 2026
The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, effective for benefits payable in January 2026. This increases the average retired worker's benefit by approximately $56 per month.
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year compared to the third quarter of the year before that.
Understanding Social Security Benefit Calculation
Average Indexed Monthly Earnings (AIME)
- Step 1:Identify your highest 35 years of earnings (indexed for inflation)
- Step 2:Sum those 35 years of indexed earnings
- Step 3:Divide by 420 (35 years ร 12 months) to get your AIME
- Important:If you have fewer than 35 years of work, zeros are included, which lowers your average
Your Social Security benefit is based on your Average Indexed Monthly Earnings, calculated from your highest 35 years of indexed earnings:
Earnings are indexed to account for wage growth over time, ensuring that earlier years' earnings are compared fairly to more recent years.
Primary Insurance Amount (PIA) Calculation
- First Bend Point:90% of AIME up to $1,234
- Second Bend Point:32% of AIME between $1,234 and $7,457
- Third Tier:15% of AIME above $7,457
- Formula:PIA = (90% ร min(AIME, $1,234)) + (32% ร min(max(AIME - $1,234, 0), $6,223)) + (15% ร max(AIME - $7,457, 0))
The PIA is calculated using 2026 bend points applied to your AIME:
The bend point structure means lower earners receive a higher percentage replacement rate, while higher earners receive a lower percentage.
Claiming Age Adjustments
How Claiming Age Affects Benefits
- Early Retirement (Age 62):Approximately 30% reduction from PIA. Benefits are reduced by 5/9% per month for the first 36 months early, then 5/12% per month for additional months.
- Full Retirement Age (FRA):100% of PIA. For those born in 1960 or later, FRA is 67. For those born 1955-1959, FRA gradually increases from 66 to 67.
- Delayed Retirement (Age 70):Approximately 124% of PIA (24% increase). Benefits increase by 8% per year (2/3% per month) for each year you delay past FRA, up to age 70.
- Maximum Delay:Delayed retirement credits stop at age 70. There is no benefit to delaying past age 70.
Your actual monthly benefit depends on when you claim Social Security, relative to your Full Retirement Age:
These adjustments are permanent. Once you claim, your benefit amount (before COLA adjustments) remains fixed for life based on your claiming age.
The 2026 Earnings Test
Working While Receiving Benefits
- 2026 Earnings Limit:$24,480 per year for those under Full Retirement Age
- Reduction Formula:$1 reduction for every $2 earned above the limit
- Example:If you earn $30,000 and the limit is $24,480, you exceed by $5,520. Your annual benefit is reduced by $2,760 ($5,520 รท 2).
- After Full Retirement Age:No earnings limit. You can work and earn any amount without reducing your Social Security benefits.
If you claim Social Security before Full Retirement Age and continue working, your benefits may be reduced by the earnings test:
Benefits withheld due to the earnings test are not lost forever. Once you reach Full Retirement Age, your benefit is recalculated to account for the months benefits were withheld, effectively increasing your future benefits.
Medicare Part B Premium Deduction
2026 Medicare Premium Impact
- 2026 Standard Premium:$202.90 per month
- Income-Related Adjustment (IRMAA):Higher earners may pay more based on modified adjusted gross income from two years prior
- Net Benefit:Your actual Social Security check is your benefit minus the Medicare Part B premium
- Example:If your benefit is $2,500 and Medicare Part B is $202.90, your net check is $2,297.10
For retirees 65 and older, Medicare Part B premiums are typically deducted directly from Social Security checks:
Medicare Part B covers doctor visits, outpatient care, and preventive services. The premium is adjusted annually and may be higher for high-income beneficiaries.
Breakeven Analysis: Early vs. Delayed Claiming
Understanding the Crossover Point
- Early Claiming Advantage:You receive benefits for 5 more years (ages 62-67), providing immediate income
- Delayed Claiming Advantage:You receive a higher monthly benefit (100% vs. ~70% of PIA), providing more income per month
- Breakeven Age:Typically between ages 78-82. If you live past this age, delayed claiming provides more total lifetime benefits
- Key Factor:Your health and family longevity history are important considerations when deciding when to claim
The breakeven analysis compares total lifetime benefits from claiming early (age 62) versus at Full Retirement Age (67):
The breakeven point varies based on your specific benefit amounts. Use the calculator's breakeven chart to see the exact crossover point for your situation.
FAQ
? What is the 2026 Social Security COLA?
The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, effective for benefits payable in January 2026. This increases the average retired worker's benefit by approximately $56 per month, bringing the average monthly benefit to $2,071.
? How is my Social Security benefit calculated?
Your benefit is based on your Average Indexed Monthly Earnings (AIME), calculated from your highest 35 years of indexed earnings. The Primary Insurance Amount (PIA) is then calculated using 2026 bend points: 90% of the first $1,234, 32% of earnings between $1,234 and $7,457, and 15% of earnings above $7,457. Your actual benefit depends on when you claim (age 62, Full Retirement Age, or 70).
? What is my Full Retirement Age (FRA)?
Your Full Retirement Age depends on your birth year. For those born in 1960 or later, FRA is 67. For those born between 1955-1959, FRA gradually increases from 66 to 67. At FRA, you receive 100% of your Primary Insurance Amount. Claiming before FRA reduces benefits, while delaying past FRA increases them by 8% per year.
? Should I claim Social Security at 62, 67, or 70?
The best age depends on your health, financial needs, and life expectancy. Claiming at 62 gives you benefits sooner but reduces them by ~30%. Claiming at FRA (67) provides 100% of your PIA. Claiming at 70 increases benefits by 24% (8% per year). Generally, if you expect to live past 80, delaying to 70 provides more total lifetime benefits. Use the breakeven analysis in the calculator to see the crossover point.
? What is the 2026 earnings test limit?
For those under Full Retirement Age who work while receiving benefits, the 2026 earnings limit is $24,480 per year. If you earn more than this, Social Security deducts $1 from your benefits for every $2 you earn above the limit. Once you reach Full Retirement Age, there is no earnings limit and you can work without any reduction in benefits.
? How does Medicare affect my Social Security check?
For retirees 65 and older, the standard 2026 Medicare Part B premium of $202.90 is typically deducted directly from your Social Security check. This reduces your net monthly benefit. The premium may be higher if your income exceeds certain thresholds (IRMAA surcharges).