Social Security is about to undergo its most significant shift in years. On September 30, 2025, a permanent payment change will take effect, followed by five additional policy changes nearly certain to start on January 1, 2026.
These updates could reshape how over 70 million Americans — including 53 million retirees — access their benefits.
The September 30 Change: Paper Checks End for Good
President Donald Trump’s March 25 executive order titled “Modernizing Payments To and From America’s Bank Account” mandates that all paper-based Social Security checks will end on September 30, 2025.
- Current situation: About 500,000 beneficiaries still receive paper checks.
- Reason for change: Cut fraud and reduce administrative costs.
- Cost comparison: Each paper check costs $0.50, while an electronic transfer costs just $0.15.
- Estimated savings: More than $2 million annually for the Social Security Administration (SSA).
Beneficiaries still receiving paper checks must switch to direct deposit or use a Direct Express prepaid debit card to continue receiving their benefits without disruption.
5 Big Social Security Changes Coming on January 1, 2026
In addition to the September 30 update, five other changes are widely expected to roll out at the start of 2026.
Cost-of-Living Adjustment (COLA) Increase
The most anticipated update is the 2026 COLA, which will be announced on October 15, 2025.
- Forecasted COLA: 2.7% increase
- Impact:
- Average retired worker: +$54/month
- Average disability or survivor beneficiary: +$43/month
However, this boost could be offset by rising Medicare Part B premiums, which are projected to jump 11.5% to $206.20/month.
Maximum Monthly Benefit Expected to Rise
High earners who qualify for the maximum payout should see their benefits increase above the current $4,018/month in 2025.
To qualify, beneficiaries must:
- Wait until full retirement age (67) to claim
- Have 35 years of high earnings
- Hit or surpass the maximum taxable earnings cap each year
Only 2% of retirees qualify for this top benefit.
Higher Payroll Tax Cap for High Earners
In 2025, earnings up to $176,100 are taxed at 12.4% for Social Security.
With wage growth, this taxable earnings cap will likely rise in 2026, meaning the top 6% of workers will contribute more payroll tax.
Higher Early Filer Withholding Thresholds
Those who claim benefits before full retirement age but still work can see part of their benefits withheld.
Current 2025 thresholds:
| Group | Limit | Withholding Rule |
|---|---|---|
| Under FRA in 2025 | $23,400/year | $1 withheld per $2 over limit |
| Reaching FRA in 2025 | $62,160/year | $1 withheld per $3 over limit |
These thresholds are expected to rise in 2026, allowing early filers to earn more without losing benefits.
Disability Earnings Limits to Rise
Workers on Social Security Disability Insurance (SSDI) have income thresholds, known as the substantial gainful activity (SGA) limit, which will likely increase.
- 2025 limits:
- Non-blind: $1,620/month
- Blind: $2,700/month
As long as COLA is positive, these SGA limits are indexed to rise yearly, giving disabled workers more room to work without losing benefits.
What This Means for Beneficiaries
These updates collectively show a massive shift in Social Security’s structure. Eliminating paper checks modernizes payment systems and cuts costs, while COLA and threshold hikes will help protect retirees and disabled workers from inflation. However, higher payroll taxes and Medicare premiums may offset some of the gains.
Starting September 30, 2025, and continuing into 2026, Social Security will see sweeping changes — from how benefits are paid to how much is received.
While these changes aim to enhance efficiency and sustainability, they also demand that beneficiaries stay informed and plan ahead to avoid disruptions and maximize their income.
FAQs
When will paper Social Security checks stop?
Paper checks will be permanently discontinued on September 30, 2025, requiring beneficiaries to use direct deposit or a Direct Express card.
How much is the projected COLA for 2026?
The forecasted COLA is 2.7%, which could add $54/month for retirees and $43/month for disability and survivor beneficiaries.
Who will be affected by the payroll tax cap increase?
High earners making over $176,100 in 2025 will pay more in 2026 when the earnings cap rises.
