"Social Security's 2026 COLA resulted in retirees getting a 2.8% benefits increase. COLAs, or Cost of Living Adjustments, cause benefits to increase in most years to protect retirees from inflation eating away at their monthly checks. Unfortunately, while the 2.8% COLA was larger than the 2.5% COLA retirees collected in 2025, it is still a big disappointment for seniors. Here's why the 2026 COLA is not great for retirees, and why many seniors collecting these benefits could find themselves struggling"
"Another big reason the 2026 COLA is so disappointing is that many retirees are going to lose a lot of it. That's thanks to the increase in Medicare premiums, which are rising from $185 in 2025 to $202.90 in 2026. Since retirees typically pay for Medicare premiums out of their Social Security checks, a big premium increase reduces how much of the COLA they actually keep. This Medicare increase is one of the biggest in recent years, so it will hit the COLA especially hard."
The 2026 Cost of Living Adjustment increased Social Security benefits by 2.8%. That raise is smaller than recent post-pandemic COLAs, which included 5.9% in 2022 and 8.7% in 2023, and follows a 2.5% increase in 2025. A substantial share of the 2026 COLA will be consumed by rising Medicare premiums, which increase from $185 in 2025 to $202.90 in 2026, reducing retirees' net benefit gains. The COLA calculation method has not kept pace with many retirees' actual expenses, leaving nominal benefit increases inadequate to fully offset higher living costs.
Read at 24/7 Wall St.
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