Millions of older Americans depend on Social Security checks to manage their monthly expenses. Each year, these payments go up slightly through a Cost-of-Living Adjustment (COLA), which is designed to help people keep up with inflation.
But in 2026, retirees may face a frustrating situation. While Social Security checks are expected to rise, a sharp jump in Medicare Part B premiums will eat away a large part of that increase. If you depend on Social Security, it is important to know how these changes will impact your income.
Rising Medicare Premiums in 2026
The 2025 Social Security Trustees Report projects that the standard Medicare Part B premium will rise to $206.50 per month in 2026. This is an increase of $21.50 compared to 2025, which is about an 11.6% jump.
This increase will be the biggest dollar rise since 2022, when the premium jumped by $21.60. Most retirees don’t pay these premiums directly. Instead, the Social Security Administration (SSA) automatically deducts the amount from their monthly Social Security checks.
That means, even if your Social Security payment goes up, you won’t get to keep all of it.
The 2026 Social Security COLA Increase
For 2026, experts estimate the COLA increase to be about 2.7%. Based on the average Social Security check of $2,006.69 (July 2025), this would equal:
- $54.18 more each month
- $650.16 more each year
At first glance, this seems like a helpful boost. But once the higher Medicare premiums are taken out, the extra money becomes much smaller.
How Much Will You Actually Get?
Let’s look at the numbers in a simple way.
| Category | Amount |
|---|---|
| Average 2025 Social Security Check | $2,006.69 |
| Projected 2026 COLA Increase (2.7%) | + $54.18 |
| Projected 2026 Medicare Part B Increase | – $21.50 |
| Net Monthly Increase in 2026 | $32.68 |
This shows that instead of enjoying the full $54.18 monthly increase, retirees will only see $32.68 extra in their checks after Medicare costs are deducted.
In other words, the Medicare premium hike will take away almost 40% of the COLA raise.
Why This Matters to Retirees
For people living mainly on Social Security, even small changes make a big difference. Losing almost half of your expected raise means:
- Less money for basics like groceries, utilities, and housing.
- Higher medical costs may still leave retirees struggling despite the COLA.
- Limited savings since there is less leftover cash each month.
This makes careful budgeting more important than ever.
What Can Retirees Do To Prepare?
While retirees cannot control Medicare premiums or COLA, they can take steps to soften the impact:
- Review your budget now to adjust for a smaller raise.
- Compare Medicare Advantage or supplemental insurance plans to check if they offer cost-saving benefits.
- Stay informed by following updates from the SSA about the final COLA announcement and premium adjustments.
- Plan ahead for healthcare costs, since these often rise faster than inflation.
By preparing early, retirees can reduce the shock of a smaller-than-expected increase.
The 2026 Social Security raise may look good on paper, but in reality, higher Medicare Part B premiums will eat up a big share of it. Instead of getting the full $54.18 per month, the average retiree will only see about $32.68 extra.
That means nearly 40% of the COLA raise disappears before it reaches your pocket. Understanding this in advance and planning your budget carefully can help you handle the changes better and avoid financial stress.
FAQs
How much will Medicare Part B cost in 2026?
It is projected to be $206.50 per month, which is $21.50 more than 2025.
How much will Social Security checks rise in 2026?
The expected COLA increase is 2.7%, which equals about $54.18 more per month for the average retiree.
How much money will actually reach retirees after deductions?
After Medicare premiums are deducted, retirees will likely see only $32.68 more per month.