2. Medicare Part B Premium Eats Into Your COLA

Here is the part of the COLA story that rarely makes the headlines: your Medicare Part B premium rose significantly in 2026, and for most retirees, it comes straight out of your Social Security payment.

The standard Medicare Part B monthly premium climbed from $185.00 to $202.90 in 2026 — a jump of $17.90 per month, or nearly 10%. For the majority of beneficiaries who have their Part B premium deducted automatically from their Social Security benefit, this increase partially offsets the COLA.

In real terms: if your benefit went up by $56 from the COLA, and your Part B went up by $17.90, your actual net gain is closer to $38 per month—not $56. That is still meaningful, but it is the honest number.

Higher earners pay more for Part B through Income-Related Monthly Adjustment Amounts (IRMAA). If your income is above $106,000 as an individual or $212,000 as a couple, you may see a larger premium deduction. Check your COLA notice for your specific figures.

What to do: Log into your my Social Security account to see your net 2026 benefit after the Part B deduction. Do not assume your take-home went up by the full 2.8%—for most people, the real increase is smaller once Medicare is factored in.