In January 2026, there will be a 2.8 percent Cost-of-Living Adjustment (COLA) that will increase the monthly checks of Social Security beneficiaries. Nevertheless, there is a simultaneous rise in Medicare Part B premiums which is likely to consume a large percentage of that increase, and retirees may end up with a far smaller corresponding increase in real-dollar benefits.
Social security COLA and Medicare premiums in 2026
– It will increase benefits by 2.8 percent, which will be equivalent to an average raise of around 56 monthly dollars to the majority of retirees.
– The regular Part B Medicare premium is going to increase by 17.90 to 202.90 per month, from 185 in 2025.
– Once the increased Medicare payment is subtracted, the average retiree is now getting a net monthly increase of approximately 38 on top of the previously announced 56.
Wider Financial Implication on Retirees
– The increment in the Part B premium and the deductibles which increase to 283 in 2026 (an increase over 257) eats into the overall COLA gain.
– The Income-Related Monthly Adjustment Amount (IRMAA) will result in higher surcharges to higher-income retirees (more than $109,000 per person, as well as 218,000 per couple) by as much as 689.90 a month.
– The hold harmless will shield some of the lower-benefit recipients against a reduction in their checks, although a large number will have a net close to zero change.
Budget and Cost-of-Living Pressures
– As inflation continues to impact food, rent and healthcare, the practical impact of the COLA can be insignificant to fixed income seniors.
– A great number of retirees report that once Medicare goes up and the cost of living is taken into consideration, the increment is lost in days or so and this raises questions of retirement insecurity.
Why Are Medicare Costs Going Up?
-The growths are in the form of rising healthcare expenses, rising outpatient care demand, technological improvements and an aging population of retirees.
– CMS pointed out that the premium increase would have been even more dramatic without new policy changes, as costs would have been cut in some of the high categories.
Adjustments to the Plans and Intelligent Strategies
– Retirees should revise their Medicare plan options as they enter open enrollment since plan changes could better save them more money per year than the increase in COLA.
– People of higher income status are advised to know the thresholds of IRMAA which did not even follow the inflation as they were the ones who have not been updated to meet the inflation.
Key Numbers Table
| Item | 2025 | 2026 |
|---|---|---|
| Social Security COLA | 3.2% | 2.8% |
| Average monthly benefit increase | $61 | $56 |
| Medicare Part B premium (standard) | $185.00 | $202.90 |
| Net average Social Security raise | ~$44 | ~$38 |
| Part B deductible | $257 | $283 |
| Top IRMAA premium (single) | ~$678 | ~$690 |
Source
FAQs
Q1: What will my monthly social security benefit increase in 2026?
It will raise by an average of approximately $56, although following increased Medicare Part B premiums, the net effect is more or less 38.
Q2: What will be the average Medicare Part B premium in 2026?
$202.90 per month.
Q3: Will the COLA be at par with the inflation?
To most, increased costs of Medicare and continuing inflation will prevent the benefit increase.
