How Social Security Works — Benefits, Claiming Age, and What to Expect in 2026
Social Security is the single largest source of retirement income for most Americans, providing monthly benefits to more than 67 million people. Yet despite its central role in retirement planning, many workers approaching retirement age have only a vague understanding of how their benefits are calculated, when they should start claiming, and how much they can actually expect to receive. The program enters 2026 with a 2.5% cost-of-living adjustment that bumps the average monthly retirement benefit to approximately $1,976 — welcome relief for retirees navigating an economy where the Consumer Price Index has risen from 319.7 in February 2025 to 326.6 in January 2026. But COLA adjustments are only one piece of the puzzle. Your claiming age, earnings history, and strategic decisions about when to file can mean the difference between receiving $1,400 per month and well over $4,000. Understanding how the system works is the foundation of any serious retirement plan. Whether you're decades away from retirement or actively deciding when to file, this guide breaks down everything you need to know about Social Security in 2026 — from how benefits are calculated to the trust fund's long-term outlook and the claiming strategies that can maximize your lifetime income.