Retired? You May Want to Go Back to Work in 2026. Here's Why.

Core Insights - 2026 is expected to be financially challenging for many older Americans, prompting consideration of part-time work to improve financial situations [1] Social Security Benefits - In 2026, Social Security benefits will receive a 2.8% cost-of-living adjustment (COLA), increasing the average retirement benefit from $2,015 to $2,071, which may not significantly alleviate financial struggles for those reliant on these benefits [2][3] Medicare Costs - Medicare costs are set to rise in 2026, with the standard monthly Part B premium increasing from $185 to $202.90, which will reduce the impact of the COLA for those paying premiums from their Social Security checks [4] - The annual deductible for Medicare Part B will increase to $283 from $257 in 2025, while the inpatient deductible for Part A will rise to $1,736 from $1,676 [5] - Daily coinsurance rates for hospital stays and skilled nursing facilities will also see increases, with rates going from $419 to $434 and from $209.50 to $217, respectively [5][6] Financial Concerns - Factors such as a modest Social Security COLA, rising Medicare costs, and ongoing inflation contribute to financial worries for older Americans, making part-time work a viable option to enhance income [7] - Those without a Medigap plan may face significant healthcare costs and should consider returning to work to bolster their financial security [8]