Most railroad retirement annuities, like Social Security benefits, will increase in January 2026. Cost-of-living increases are calculated each year in both the Tier I and Tier II portions of a railroad retirement annuity. The Tier I portion, like Social Security benefits, will increase by 2.8 percent, which is the percentage of the Consumer Price Index (CPI) rise. The Tier II portion will go up by 0.9 percent, which is 32.5 percent of the CPI increase.
Additionally, railroad retirement annuitants who are subject to earnings restrictions can earn more in 2026 without having their benefits reduced due to increased limits indexed to average national wage increases. For those under full retirement age throughout 2026, the exempt earnings amount rises to $24,480 from $23,400 in 2025. For beneficiaries attaining full retirement age in 2026, the exempt earnings amount, for the months before the month of full retirement age is attained, increases to $65,160 in 2026 from $62,160 in 2025.
Learn more at the Railroad Retirement Board website.