Social Security Changes : Social Security is a lifeline for millions of retirees across the United States, including thousands of families in Tennessee. Starting in 2026, several important changes are coming to the program. These updates will affect how much money retirees receive, when they can claim full benefits, and even how taxes might impact monthly checks.
For Tennessee residents planning their retirement or already depending on Social Security, understanding these updates is essential. Below is a clear guide to what’s changing, why it matters, and how you can prepare.
Key Social Security Changes in 2026
| Change | What’s New in 2026 | Why It Matters in Tennessee |
|---|---|---|
| Cost-of-Living Adjustment (COLA) | Benefits are expected to rise by about 2.7% starting January 2026. | Retirees in Tennessee will see a modest increase in monthly checks, helping offset inflation. |
| Full Retirement Age (FRA) | For people born in 1960 or later, the FRA becomes 67 years. | If you’re turning 62 in 2026, you’ll need to wait until 67 for full benefits. |
| Maximum Taxable Earnings | The cap on income subject to Social Security tax will rise to nearly $183,600. | High-earning Tennesseans still working will pay more in payroll taxes. |
| Earnings Test Limit | Beneficiaries under FRA can earn more before benefits are reduced. | Good news for Tennessee retirees who want part-time work without losing too much from their checks. |
| End of Paper Checks | Paper checks stop in late 2025; only direct deposit or Direct Express will remain. | Retirees in Tennessee must switch to electronic payment to avoid missed checks. |
| WEP/GPO Repeal | Rules reducing benefits for public sector workers (teachers, police, firefighters) are being phased out. | Retired Tennessee teachers and state workers could see higher benefits. |
| Medicare Premiums | Medicare Part B costs will rise in 2026, reducing the net gain from COLA. | Retirees should budget carefully since healthcare costs may cut into benefit increases. |
What This Means for Tennessee Retirees
Living Costs in Tennessee: While Tennessee has a lower cost of living than many states, rising prices for housing, utilities, and medical care mean retirees should plan carefully.
Healthcare Pressure: Medicare premium increases may eat away at the 2026 COLA, so budgeting for medical costs is essential.
Planning Ahead: If you were born in 1960, your FRA is now 67. Retiring earlier will mean reduced benefits for life.
Teachers and Public Workers: The repeal of WEP and GPO is a major win, as many retired Tennessee teachers previously received smaller checks.
Digital Shift: Since paper checks are ending, retirees should set up direct deposit with a Tennessee bank or use the Direct Express card.
1. How much more money will I get in 2026?
Most retirees will see about a 2.7% increase in their monthly checks, but the final amount depends on your current benefit.
2. I was born before 1960. Do I still have to wait until 67?
No. The higher FRA applies only to those born in 1960 or later. Your retirement age stays the same.
3. Can I keep working while collecting Social Security in Tennessee?
Yes. You can work and collect benefits, but if you’re younger than your FRA, earning above the annual limit may temporarily reduce your check.
4. What if I still get paper checks?
Paper checks will end after September 2025. You must sign up for direct deposit or a Direct Express card to keep receiving payments.
5. Will my Social Security be taxed in Tennessee?
No. Tennessee does not tax Social Security benefits. However, federal taxes may still apply depending on your income—though new legislation may reduce or eliminate these taxes in 2026.
Final Thoughts
Social Security remains the backbone of retirement security in the U.S. The 2026 updates bring both opportunities and challenges. For Tennessee retirees, the modest COLA will help, but rising healthcare costs may limit its impact. The increase in full retirement age means younger retirees need to plan carefully, while the repeal of WEP and GPO offers relief to public sector workers.
By staying informed and preparing ahead, retirees in Tennessee can make the most of these Social Security changes and protect their financial future.