What to Expect from Social Security in 2026

Chris Parker and Kristen Nishihara of the Ishihara & Parker Law Firm in Longview, Texas, recently discussed what retirees and future beneficiaries can expect from Social Security heading into 2026. While there’s some good news in the form of a benefit increase, there are also important considerations regarding Medicare Part B premiums that may offset that raise.

A Modest Social Security Increase in 2026

The good news for Social Security recipients is that benefits will once again receive a cost-of-living adjustment (COLA). Parker and Nishihara explained that retirees can expect about a 2.6% to 2.7% increase in their Social Security payments for 2026.

This adjustment is tied to the Consumer Price Index, which reflects inflation and related economic factors. Looking at recent history:

• 2024: 2.5% increase
• 2023: 3.2% increase
• 2022: 8.7% increase

While 2026 won’t bring as dramatic a bump as 2022, the increase is still a welcome adjustment for those relying on Social Security.

Rising Medicare Part B Premiums

Unfortunately, higher Social Security benefits are accompanied by rising Medicare Part B costs. Parker noted that premiums are expected to increase by 11.6%, moving from the current $185 to about $206.50 per month for those without income-related adjustments.

Because premiums are deducted directly from Social Security checks, many retirees may notice that their net monthly income increase feels smaller than anticipated.

How Income Affects Your Premiums

Nishihara highlighted that Part B premiums are tied to income reported two years prior. For example:

• Individuals with an adjusted gross income (AGI) under $106,000 (or married couples under $212,000) will pay the standard $206.50 premium.
• Those earning more may face Income-Related Monthly Adjustment Amounts (IRMAA), which raise the premium. For instance, an individual reporting between $106,000 and $133,000 (or a couple between $212,000 and $266,000) will see an additional $74 per person added to their monthly Part B cost.

This income tie-in can catch retirees by surprise. Situations such as taking a large retirement withdrawal, selling property and reporting capital gains, or other unusual income spikes can increase Medicare costs two years later.

Planning Ahead

Parker and Nishihara advised that while these adjustments may be frustrating, awareness is key. Retirees should plan for the lagging effect of income on future Medicare premiums so they are not caught off guard by unexpected increases.

The bottom line for 2026: retirees can expect a modest boost to their Social Security checks, but higher Medicare costs will take a significant bite out of those gains.

‍