"Social Security recipients got some decent news at the end of October. The Social Security Administration announced that in 2026, benefits are getting a 2.8% cost-of-living adjustment, or COLA. It's actually good news for a couple of reasons. First, a 2.8% COLA beats the 2.5% raise seniors on Social Security got at the start of 2025. Also, a 2.8% COLA means inflation hasn't been too rampant in recent months."
"Meanwhile, the average Social Security benefit today is $2,015. Once 2026's COLA goes into effect, the average benefit is expected to rise to $2,071. That might seem like a nice boost. But before you start counting that extra money, realize that you may not get it all. Will Medicare premium hikes trip you up? If you're on Social Security, you're entitled to a COLA in 2026. This holds true whether you're getting benefits based on your own work record or you're collecting spousal benefits."
"However, if you're enrolled in Medicare, you're probably aware that your Part B premiums are paid directly out of your Social Security benefits. And any increase in Part B for 2026 is going to chip away at your upcoming COLA, leaving you with less of a raise. Of course, this isn't new to 2026. Any time there's an increase in the cost of Part B, it can erode your Social Security COLA. There's really no getting around that."
The Social Security Administration set a 2.8% cost-of-living adjustment for 2026, exceeding the 2.5% increase applied at the start of 2025. The 2.8% COLA reflects relatively restrained recent inflation because COLAs track inflation measures. The current average Social Security benefit of $2,015 is projected to increase to about $2,071 after the 2026 COLA. Medicare Part B premiums are deducted directly from Social Security payments, so any rise in Part B costs for 2026 will reduce the effective COLA received by beneficiaries. Beneficiaries can consider steps to improve their financial picture if the net increase falls short.
Read at 24/7 Wall St.
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