What’s Changing For Federal Retirement In 2026? What We Know
Your retirement may be set in stone, but the path to get there is always changing. If you don’t want to walk down a rocky road, you need to stay in touch with federal retirement changes that happen on an often annual basis. As your trusted retirement planning experts, we’re here to tell you what we know of federal retirement program updates coming in 2026. Reach out to Federal Educators today for a consultation or get started on a free benefit analysis!
Federal Government Retirement Plans For 2026: An Overview
Big things are happening, and they can impact your FERS retirement plan. Some of it is good, like pay raises for federal employees throughout the nation. Some of it is bad, like the possibility of a federal government shutdown. Other changes in 2026 can also impact your federal retirement plan, like new policies on the hiring process, new approaches to federal pension, and most importantly, changes to federal employee retirement policies.
This can be a lot to take in, but we’re here to help you through these new changes coming in 2026 with this insightful article. You can also speak face-to-face with an expert retirement planner near you for a more comprehensive understanding of what to expect and how to adapt your federal employee pension plan accordingly.
Updates and Changes to FERS In 2026
The Federal Employee Retirement System (FERS) is going through budget alterations that can cause existing federal basic benefit plans to become outdated and/or pave the way for greater opportunities when adjusting your existing plan. The end result is up to you. Educating yourself is the first step, and taking action is the next.
Changes to the FERS retirement system in 2026 include:
- An increase in retirement savings contributions
- A possible end to the FERS Supplement
- Unfavorable cost-of-living adjustment (COLA) calculations
- Updating the High-3 calculation method to the High-5
Learn more > FERS Annuity Supplement Explained: Who Gets It And How It Works
Full Retirement Age Will Rise In 2026
Currently, the full retirement age (FRA) is 66 and a half. In order to receive 100% of your Social Security benefits, you must reach your FRA. This will require a bit more patience starting next year as the FRA will increase to 67 in 2026. While the aim is to keep this federal employee retirement program financially stable, this also means that you have to plan to wait longer to receive your full federal pension benefits.
Social Security Tax Limit Will Increase In 2026
You may have to brace yourself when filing your taxes next year. The Social Security tax limit is expected to increase in 2026 in response to rising inflation, and that means you’ll likely be paying more in Social Security tax fees. As long as you plan for this adjustment ahead of time, you can lessen the blow and stay on track to an easygoing retirement.
| The Social Security tax limit is expected to increase by $7,500 in 2026. |
Projected Cost of Living Adjustments In 2026
Again, in response to inflation, COLA is expected to increase in 2026. This often means bigger paychecks for retirees in an effort to accommodate. This might sound like extra money in your pocket, but if the idea is to match the impact of rising inflation, these adjustments may come out even. You will need to be more strategic with your investments if you want to see greater gains for a wealthy retirement.
Be Prepared For Federal Retirement Changes In 2026. Meet With Federal Educators to Adjust Your Retirement Plan.
Meet with the experts for a better understanding of federal retirement changes, FERS retirement plan strategies, and more. With the Federal Educators benefit analysis, you can have a baseline for what you qualify for and make adjustments to your retirement plan in response to annual changes. Call (813) 568-1212 today to get started on cultivating a fulfilling retirement!