What you need to know about changes to Social Security, Medicare and Medicaid in 2026

Medicare and Drug Pricing - Medicare premiums and deductibles are increasing, with the standard monthly premium for Medicare Part B rising by 9.6% to $202.90 and the annual deductible increasing by 10% to $283 [3] - The Inflation Reduction Act of 2022 introduces a $2,000 annual cap on overall prescription drug costs, which could lead to significant savings for retirees [1] - Major price cuts on 10 leading drugs are expected, ranging from 38% to 79%, projected to save Medicare beneficiaries approximately $1.5 billion in out-of-pocket costs in 2026 [8] Social Security Adjustments - Social Security's cost-of-living increase (COLA) for 2026 will be 2.8%, resulting in an average monthly increase of around $56 for recipients [5] - However, this increase may not keep pace with inflation, as the cost of living rose by 3% over the past year [4] Retirement Savings Contributions - Contribution limits for individual retirement accounts (IRAs) are increasing, with limits set at $7,500 for those under 50 and $8,600 for those 50 and older in 2026 [9][11] - For 401(k) plans, the maximum contribution will rise to $24,500 for those under 50, with additional catch-up contributions available for older savers [12] Future Challenges for Social Security and Medicare - Both Social Security and Medicare are facing significant financial strain, with projections indicating that Medicare's Hospital Insurance Trust Fund could be depleted by 2033, leading to potential benefit cuts [13] - The Social Security trust fund for retirement benefits is also projected to run out in 2033, which could result in cuts of at least 19% to benefits [14]