Medicare premium increase reduces Social Security COLA for 2026

Core Insights - Retirees will see an inflation-adjusted increase of approximately $56 in their average Social Security retirement benefits starting January 2026, but many may experience a net increase of only around $38 due to rising Medicare Part B premiums [1][2][7] - The Medicare Part B premium will increase by $17.90 to $202.90 per month in 2026, marking the second-highest dollar increase in the program's history [1][4][5] - The cost-of-living adjustment (COLA) for Social Security beneficiaries will be 2.8% in 2026, translating to an average increase of $672 annually for those receiving around $2,008 monthly [6][7] Summary by Sections Social Security Benefits - The average increase in Social Security benefits will be $56 per month, but actual increases may vary based on individual benefit amounts [1][7] - For lower-income households, the increase in Medicare premiums may exceed the increase in Social Security benefits, leading to a net loss [6][8] Medicare Part B Premiums - The standard monthly premium for Medicare Part B will rise to $202.90 in 2026, with a notable increase of $17.90 [1][5] - This increase is the second-largest in terms of dollars, following a record increase of $21.60 in 2022 [4] Cost-of-Living Adjustment (COLA) - The COLA for Social Security will be 2.8% in 2026, based on inflation data released in October [6][7] - The COLA is not a flat dollar amount; it varies based on the recipient's monthly benefit [6][7]