2026 COLA Adjustment
The Social Security Administration has announced the cost-of-living adjustment (COLA) for 2026 benefits, reflecting changes in the Consumer Price Index. This adjustment automatically increases monthly benefits for the approximately 70 million Americans who receive Social Security, including retired workers, disabled individuals, and survivors. While the COLA helps maintain purchasing power, recipients should review their overall retirement income strategy annually to ensure adequacy.
Full Retirement Age
The full retirement age (FRA) continues its gradual increase for those born in later years. Understanding your FRA is critical because claiming before it permanently reduces your monthly benefit, while delaying past it (up to age 70) permanently increases it through delayed retirement credits of approximately 8% per year. For many retirees, the difference between claiming at 62 versus 70 can mean tens of thousands of dollars in additional lifetime benefits.
Claiming Strategies for Couples
Married couples have additional strategic options for maximizing household Social Security income. Common strategies include having the higher earner delay claiming while the lower earner claims earlier, providing income while maximizing the larger benefit. Spousal benefits, which allow one spouse to receive up to 50% of the other's full benefit, add another dimension to the optimization puzzle. Survivors benefits, which allow the surviving spouse to receive the deceased spouse's full benefit, make delaying the higher earner's claim even more valuable as a form of insurance.