3 Hidden Traps Shrinking Your Social Security Benefits By 2026

Thank you for joining us for this important Social Security update.
Today we are looking at why your Social Security payments could actually shrink even with a cost of living adjustment on the horizon.
Rising taxes, higher Medicare premiums, and working in retirement can all reduce the money you receive each month.
Keep watching as we explain how these rules impact your benefits and what you can do to protect your income.
Federal taxes are the first reason your Social Security payment may shrink even after a cost of living adjustment in 2026.
As up to 85% of your benefits can be taxed if your total income exceeds $34,000 for individuals or $44,000 for couples filing jointly.
And although the recent One Big Beautiful Bill Act added a $6,000 deduction for seniors with incomes under $75,000, most retirees with pensions, 401k withdrawals, or part-time work will still see a portion of their benefits taxed, especially if they cross those income thresholds.
Next, Medicare premiums take another bite with the standard part B premium expected to jump from $185 to $26.50 per month in 2025, an increase of over 11% that will be deducted directly from your Social Security payment before you receive it.
Which means the projected 2.7% COA may not keep up with rising health care costs.
For those under full retirement age who continue working, the earnings test can further reduce benefits as anyone earning more than $23,400 in 2025 will lose $1 in benefits for every $2 earned above that limit.
While those reaching full retirement age during the year face a higher threshold of $62,160, but still lose $1 for every $3 earned above it.
These rules impact retirement and disability beneficiaries alike, while supplemental security income recipients may see smaller increases since SSI is based on different federal thresholds and is also affected by state supplements and income limits.
Understanding how these tax rules, healthcare deductions, and earnings penalties interact is essential for planning your retirement income and avoiding surprises in your monthly budget as you look ahead to the next steps in protecting your Social Security benefits.
Even with a projected 2.7% cola, rising Medicare premiums and taxes on up to 85% of your Social Security benefits can leave you with less money each month.
Review your income sources carefully and consider delaying benefits until full retirement age to minimize reductions.
For more information, visit socialsecurityalerts.news.
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