"The first thing that retirees need to know is that a good portion of their Social Security raise is going to disappear before it even gets to them. That's because most seniors who receive insurance coverage through Medicare have Medicare premiums withdrawn automatically from their Social Security payments - and Medicare premiums are going to increase substantially in 2026. Medicare Part B premiums are going up by around 9.7% next year."
"This $17.90 increase will reduce the amount of the COLA that seniors actually collect. A retiree getting the average benefit of $2,008 per month will get a $56.22 raise due to the 2.8% COLA, but $17.90 of that will simply be gone as it is diverted to cover these extra Medicare costs. The premium increase is consuming almost 1/3 of the total amount that checks are rising."
"Social Security benefits are a crucial income source for many seniors, so it's common for retirees to eagerly await the news of their Cost of Living Adjustment each October. Cost-of-Living Adjustments (COLAs) happen automatically in most years when prices are rising because if COLAs didn't happen, the buying power of benefits would be in constant decline due to inflation. For 2026, retirees got some good news."
For 2026 Social Security benefits receive a 2.8% COLA, up from 2.5% in 2025. Many beneficiaries have Medicare premiums automatically deducted from their Social Security payments. Medicare Part B premiums will rise about 9.7% in 2026, increasing by $17.90 to $202.90 per month. A recipient receiving the average benefit of $2,008 monthly would see a $56.22 COLA increase, but $17.90 of that will be diverted to higher Medicare costs, consuming nearly one-third of the benefit bump. Seniors are already facing elevated costs for groceries and housing, reducing the effective relief from the COLA.
Read at 24/7 Wall St.
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