Social Security benefits will increase by 2.8% in 2026 beginning in January. The annual cost-of-living adjustment (COLA) applies to retirement, disability, and survivors benefits and Supplemental Security Income (SSI). The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the change in prices paid for goods and services by certain employed urban consumers.
The 2026 COLA will raise Social Security benefits by $56 per month on average. The extra dollars, however, will be offset by a nearly 10% hike in the Medicare Part B premium, from $185 this year to $202.90 in 2026. This is the second largest dollar increase in the Part B premium in Medicare history. Premiums have nearly doubled since 2015, when the Medicare Part B premium was $104.90.
For higher income Medicare beneficiaries, the monthly Part B premium is adjusted higher, starting with a modified adjusted gross income above $109,000 for a single individual and $218,000 for a couple filing a joint tax return. For more information on income-related monthly adjustment amounts see 2026 Medicare Parts A & B Premiums and Deductibles | CMS