Retirees receive only $38 of the $56 monthly COLA increase after Medicare Part B premiums rise to $202.90 in 2026.
The 2026 Social Security cost-of-living adjustment added $56 monthly to the average retiree’s benefit, but a $17.90 increase in Medicare Part B premiums reduced the net gain to $38. The standard premium rose to $202.90, up from $185.00 in 2025, consuming 32% of the COLA.
Retirees with benefits near $1,280 monthly lose roughly half their COLA to the fixed Part B increase, as smaller benefits absorb a larger share. IRMAA surcharges push premiums to $284 monthly at the first tier, with 2024 tax returns already locking in 2026 costs.
The 2.8% COLA adjustment added $672 annually to the average benefit, but the $215 annualized premium increase offsets much of the gain. Higher-benefit retirees retain more of their raise due to the flat-dollar premium structure.