All seniors are anxious to get that annual increase to their Social Security benefit, which happens in most years. But it seems that the annual Cost of Living Adjustment (COLA) we receive is never enough to offset the inflation we have all experienced in the preceding year. And this will likely ring true for many, as notices from the Social Security Administration start hitting your mailbox in early December. Those notices will tell you what your new monthly Social Security payments will be, but here’s a spoiler alert: what you end up getting in COLA dollars may not be as much as you expect!
There are reasons for that, notably that Medicare’s Part B premium for 2026 is going up by nearly $18 per month. And since your Medicare premium is deducted from your Social Security payment, that increase will consume a good portion of your Social Security COLA increase. The net result is that your COLA dollars will likely not be as much as you expect. You can either be happy about getting a 2.8% bump in your Social Security benefit, or angry that it isn’t enough. But it is certainly better than nothing, even if it doesn’t fully offset the higher prices you are now paying. Sound complicated? Well, this webinar presented by the AMAC Foundation’s certified Social Security Advisor Russ (Rusty) Gloor, will help you decipher the SSA’s notice about your 2026 Social Security COLA increase and benefit amount.
I’m sorry but the government’s magnanimous cola after Medicare deductions netted a $5 raise per month. Hardly a dent against the rising cost of living. How about an adjustment for Medicare deductions ?
I am indeed a truly thankful life long, hard working, retired citizen. I imagine my work ethic mirrors my millions of dedicated and patriotic retired brothers and sisters. We are a large group of givers – not complainers. We also have the ability to see and rightfully interpret events and behaviors of our financial and political world that we still live in and pay our way in. There must be some ideas of solution to help offset double digit cost of living increase and low single digit returns of our investments. If I may offer, perhaps popthere could be a transfer of some of the funds from the hundreds of millions of Medicaid fraud we are finding (before it all magically disappears again with no accounting – slippery lil dollars aren’t they) into SS COLA ? I will gladly submit receipts and account for every penny sent my way I am truly thankful for the 2.8% COLA increase. Having ideas and speaking up for retirees is not equivocal to complaining. I believe the complainers are the takers of the moneys and their thirst for more seems ever demanding – so they take more. Retirees appear to be heard as simply a squeaky wheel. Russel – it’s a legitimate squeak.