"But perhaps the most significant update was a 2026 cost-of-living adjustment (COLA) announcement. The SSA announced that in 2026, Social Security benefits will be rising 2.8%. That's a notch higher than the 2.5% COLA seniors received at the start of 2025. Whether that upcoming COLA holds up well will hinge a lot on how inflation trends. In November, inflation dropped to 2.7%, according to that month's Consumer Price Index. If inflation continues to wane, seniors could get some real lift out of their 2.8% COLA."
"The standard monthly premium for Medicare Part B is rising from $185 in 2025 to $202.90 in 2206. The annual deductible for Part B is also increasing from $257 to $283. Part A costs are rising, too. Though most Medicare enrollees do not pay a premium for Part A, which covers hospital care, out-of-pocket Part A costs are going up. The inpatient hospital deductible for Part A is rising from $1,676 to $1,736 in 2026."
Social Security benefits will increase 2.8% in 2026, slightly higher than the 2.5% COLA in 2025, with the final impact depending on future inflation. The SSA also raised the earnings-test limit, maximum monthly benefit, wage cap, and work-credit requirements for 2026. Medicare costs are climbing: Part B monthly premiums rise from $185 to $202.90 and the Part B deductible from $257 to $283. Part A inpatient deductible increases to $1,736, daily coinsurance for days 61–90 rises to $434, and skilled nursing daily rates go to $217. Higher Medicare costs could substantially reduce retirees' net gain from the COLA.
Read at 24/7 Wall St.
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