If you're retired or approaching retirement here in Stuart, FL, you've probably heard some buzz about Social Security changes this year. And let's be honest, keeping up with all these updates can feel like a full-time job. The good news? We've done the homework for you.

Whether you're already collecting benefits or planning your retirement timeline, these 2026 changes could have a real impact on your monthly income, your taxes, and your overall financial strategy. Let's break it all down in plain English.

Table of Contents

  1. The 2.8% Cost-of-Living Adjustment (COLA)
  2. Higher Earnings Limits for Working Retirees
  3. Full Retirement Age Is Now 67
  4. Increased Maximum Taxable Earnings
  5. Higher Work Credit Threshold
  6. Increased SSI and Disability Payments
  7. New $6,000 Tax Deduction for Seniors
  8. What This Means for Your Retirement Plan
  9. Next Steps for Stuart Retirees

The 2.8% Cost-of-Living Adjustment (COLA)

Here's the headline everyone's been waiting for: Social Security beneficiaries are receiving a 2.8% cost-of-living adjustment for 2026. That might not sound like much on paper, but it adds up.

For the average retired worker, this translates to approximately $56 more per month. That bumps average retirement benefits from $2,015 to $2,071 starting this January. If you're receiving survivor benefits, family benefits, or Social Security Disability Insurance (SSDI), you're getting the same boost.

Now, is 2.8% going to cover everything? Probably not, especially with grocery prices and insurance premiums doing their own thing here in Florida. But it's still money in your pocket, and every dollar counts when you're on a fixed income.

Stacks of coins growing beside a Social Security check and January calendar, illustrating 2026 COLA increase for retirees in Florida

Higher Earnings Limits for Working Retirees

Planning to keep working while collecting Social Security? You're not alone, plenty of folks in Stuart aren't ready to hang up their hats just yet. The good news is the earnings limits have increased for 2026.

If you're under full retirement age:

  • The earnings limit is now $24,480 per year ($2,040 per month)
  • Social Security deducts $1 for every $2 you earn above this limit

If you're reaching full retirement age in 2026:

  • The limit jumps to $65,160 per year ($5,430 per month)
  • Only $1 is deducted for every $3 earned above this amount, and only until you hit your birthday

Once you reach full retirement age? No earnings limit at all. Work as much as you want without any benefit reduction.

This is huge for retirees who want to stay active, pick up part-time consulting work, or keep running a small business. If you're trying to figure out how working income affects your overall retirement picture, it might be worth choosing a wealth manager who can map it all out for you.

Full Retirement Age Is Now 67

This one's been a long time coming. The full retirement age has officially reached 67 for everyone born in 1960 or later. This completes a gradual shift that's been phased in over decades.

What does this mean for you? If you were born in 1960 or after and you claim benefits before 67, you'll see a reduction in your monthly payment. On the flip side, if you delay past 67, you can earn delayed retirement credits, up to age 70.

For Stuart residents who are still a few years out from retirement, this is an important number to keep in mind when planning. Your claiming strategy can make a difference of tens of thousands of dollars over your lifetime.

Increased Maximum Taxable Earnings

If you're still working and earning a higher income, here's something to note: the maximum amount of earnings subject to Social Security tax has increased to $184,500 in 2026.

This affects both employees and self-employed individuals. Essentially, you'll pay Social Security tax on the first $184,500 of your earnings. Anything above that? No Social Security tax, but also no additional credits toward your benefit calculation.

For business owners and high earners in our community, this change means a slightly higher tax bill. It's worth factoring into your cash flow planning for the year.

Professional reviewing financial documents at a tidy desk, highlighting 2026 Social Security taxable earnings updates for Stuart high earners

Higher Work Credit Threshold

To qualify for Social Security benefits, you need to earn work credits throughout your career. In 2026, the amount of income needed to earn one credit has increased to $1,890.

You can still earn a maximum of four credits per year, which means you'd need to earn $7,560 in 2026 to max out your credits. For most full-time workers, this isn't a concern. But if you're working part-time, transitioning into retirement, or taking a sabbatical, it's worth keeping an eye on.

Increased SSI and Disability Payments

Supplemental Security Income (SSI) recipients are also seeing increases in 2026:

  • Eligible individuals: $994 per month (up from $967)
  • Eligible couples: $1,491 per month (up from $1,450)

Additionally, the Substantial Gainful Activity (SGA) thresholds for disability determinations have increased:

  • Non-blind workers: $1,690 per month
  • Blind workers: $2,830 per month

If you or a family member relies on these programs, these increases provide a bit more breathing room, though, as always, they might not fully keep pace with rising costs.

New $6,000 Tax Deduction for Seniors

Here's a piece of good news that doesn't get enough attention: Americans age 65 and older can now claim a new $6,000 federal tax deduction for 2026.

This additional deduction is designed to provide extra tax relief for retirees. When combined with other deductions and credits, it could meaningfully reduce your tax burden this year.

If you haven't already reviewed your tax strategy for 2026, now's the time. This new deduction could change whether you should itemize, how much to withdraw from retirement accounts, and how your overall tax picture looks. The team at Davies Wealth Management regularly helps Stuart retirees navigate exactly these kinds of decisions.

Smiling retired couple reviewing paperwork in a bright Florida kitchen, reflecting new 2026 senior tax deductions and planning

What This Means for Your Retirement Plan

Okay, so we've covered the numbers. But what does all this actually mean for your retirement?

Here's the thing: Social Security is just one piece of the puzzle. For most retirees, it covers maybe 30-40% of their pre-retirement income. The rest has to come from savings, investments, pensions, or other sources.

These 2026 changes: especially the COLA increase and the new tax deduction: are positive developments. But they also highlight why having a comprehensive retirement income plan matters. You want your Social Security claiming strategy, your investment withdrawals, and your tax planning all working together.

If you haven't stress-tested your retirement plan lately, it might be worth doing so. Things change: Social Security rules, tax laws, market conditions, and your own life circumstances. A plan that made sense three years ago might need some adjustments today.

We talk about this kind of stuff all the time on our podcast over at www.1715tcf.com: it's a great resource if you want to dig deeper into retirement planning topics.

Next Steps for Stuart Retirees

So what should you actually do with all this information? Here are a few practical steps:

  1. Review your Social Security statement. Make sure your earnings history is accurate and you understand your projected benefits.

  2. Revisit your claiming strategy. With full retirement age now at 67, consider whether delaying benefits makes sense for your situation.

  3. Check your estate plan. Social Security changes are a good reminder to make sure your overall estate and legacy plans are up to date. Our estate planning tool can help you get started.

  4. Talk to a professional. Whether it's understanding how working income affects your benefits or optimizing your tax situation, a financial advisor can help you put all the pieces together.

At Davies Wealth Management, we work with retirees and pre-retirees throughout the Stuart area every day. If these changes have you thinking about your own retirement strategy, we'd love to chat. Sometimes a quick conversation is all it takes to get clarity and confidence about your financial future.