As the year ends and a new one begins, this often means changes in government. For example, according to official information, starting in 2026, millions of U.S. citizens will be able to receive up to $5,430 per month from the Social Security Administration (SSA). In late October, after delays caused by the government shutdown, authorities determined that the Collateral Adjustment Rate (CAR) would be 2.8% for 2026. This implies certain changes to the benefits many citizens receive.
The amount of the direct payment for retirees receiving standard benefits recently increased thanks to the COLA
This comes as Donald Trump recently announced that his administration is considering a retirement program similar to the one implemented in Australia. “We’re looking at it very seriously,” Trump said. “It’s a good plan. It’s worked very well.” As for the actual changes for 2026, the amount of the direct payment for retirees receiving standard benefits recently increased thanks to the annual cost-of-living adjustment. The idea is that the maximum payment for 2026 will be $5,251, but in reality, it is possible to receive up to $5,430, according to the Social Security Administration.
The employer-funded contributions are made in addition to the worker’s regular salary
Regarding the changes to the retirement plan compared to the United States, employers are required to fund their employees’ savings accounts, which are invested in selected funds and remain locked until retirement. This does not mean that workers cannot contribute to their own savings accounts; quite the contrary. Furthermore, the employer-funded contributions are made in addition to the worker’s regular salary.
The Australian superannuation program was created to address concerns about an aging population
In the United States, changes in income levels, whether increases or decreases, depend on what’s known as the Cost of Living Adjustment (COLA). This adjustment is implemented annually to ensure that Social Security beneficiaries maintain their purchasing power to cover their basic needs in the face of rising inflation or other economic factors. This would be very helpful if combined with the Australian pension program. The Australian superannuation program, as it’s known, was created to address concerns about an aging population and how to financially sustain retirement.
Several factors influence the monthly benefits that must be paid to receive the maximum payment
Regarding the current COLA, given that the current average monthly Social Security benefit for retired workers in 2025 is around $2,012, the 2.8% increase would result in checks of around $2,068 for 2026. However, several factors influence the monthly benefits that must be paid to receive the maximum payment. Hence the importance of staying informed about Social Security updates, as well as considering personal needs and circumstances. Every case is unique. For example, to maximize monthly benefits during retirement, the beneficiary would have had to have earned income equal to or greater than a set maximum taxable amount.
Australia’s retirement system has a B+ rating in the 2025 Mercer CFA Institute Global Pension Index. Meanwhile, the US system has a C+ rating. Therefore, reforming the US retirement system to align it with Australia’s would significantly improve the situation for retirees in the United States, who currently rely on a system that sometimes fails to meet their basic needs.
Until the issue of retirement changes is clarified, as indicated in the Social Security Benefit Payment Calendar for the year, eligible beneficiaries with birthdates between the 1st and 10th of any month will receive their first $5,430 on January 14, 2026. Payments will depend on the beneficiary’s birthdate, the number of years worked, the type of work, the amount earned, and the age at which they chose to retire. Those who qualify with birthdates between the 11th and 20th will receive their payment on Wednesday, January 21; and beneficiaries born between the 21st and 31st will receive it on January 28. In any case, and for any questions, please consult the government website.