Your Social Security check may change over the next few months. This is what’s happening.
Social Security is a huge part of many Americans’ lives. In July alone, over 70 million people received payments, and this number seems to grow every month.
On the one hand, some changes are on the horizon. Analysts anticipate a 2.8% increase in Social Security payments by 2026. But, and this is critical—many worry that this bump won’t keep pace with inflation, especially for retirees on fixed incomes.
1. Paper checks will be phased out
In March, an executive order came down to stop federal paper checks. As of September 30th, those checks will be a thing of the past. Starting in October, folks will need to either set up direct deposits to their bank accounts or opt for a prepaid debit card for those without bank access.
While the majority already receive their payments electronically, there are still many who rely on paper checks. If that’s you, make sure your information is updated at the Social Security Bureau by the end of this month.
2. Potential deductions from payments
Back in 2020, the Department of Education paused the collection of default federal student loans, which extended to Social Security payments as well. This was meant to provide some relief, but they plan to resume taking a cut from payments soon, possibly as soon as this month. Beneficiaries at risk of this deduction may see about 15% taken from their payments.
3. Increased payroll taxes for some
Social Security is primarily funded by payroll taxes. Most workers contribute 6.2%, matched by their employers, but higher earners only contribute on a portion of their income. Each year, the Social Security Administration adjusts the maximum taxable income. For 2025, that number will rise to $176,100 from $168,600 in 2024.
4. Adjustments for inflation
A surprising find from a recent survey: Over two-thirds of American adults didn’t realize Social Security benefits are adjusted for inflation. These adjustments, known as Cost of Living Adjustments (COLA), are based on inflation data. Still, some retirees feel that their payments aren’t quite keeping up with rising costs, especially in areas like healthcare.
This year, beneficiaries received a 2.5% increase in their monthly payments, but analysts expect it could rise to 2.7% this year, although the final figure won’t be confirmed until mid-October.
5. Higher Medicare premiums
For those enrolled in Medicare, premiums for Part B are automatically deducted from Social Security payments. With healthcare costs climbing, experts predict significant hikes in these premiums come 2026. Currently, the estimate for Standard Part B Premiums may jump from $185 to $206.20—an 11.5% increase. That’s well above the anticipated COLA. There’s a provision that protects some beneficiaries from a decrease in payments, but the majority will still feel the pinch from rising medical expenses.
So, there are indeed changes coming for Social Security benefits, and it’s essential to stay informed about what’s changing beneath the surface.
