The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026. If you're receiving Social Security, your January check will be bigger. But there's more to this story than just a higher deposit—especially when it comes to your Medicare coverage.
Your Checks Are Going Up (But So Is Medicare)
Starting in January 2026, the average retired worker will see their Social Security benefit increase from $2,015 to $2,071 per month. That's about $56 more each month, or $672 annually. Medicare Part B premiums typically come directly out of that check, so your actual take-home increase may be less than you expect.
If You're Still Working
If you're under full retirement age and collecting Social Security while still working, earnings limits can reduce or even eliminate your monthly benefit. For 2026, if you're under full retirement age for the entire year, you can earn up to $24,480 before Social Security withholds $1 for every $2 above that limit.
Why This Matters for Your Medicare Decisions
That number determines whether you qualify for Extra Help, whether you're subject to IRMAA surcharges, and what you can realistically afford in out-of-pocket costs. IRMAA is a cliff surcharge—if your income exceeds the threshold by even one dollar, your Medicare premiums can jump significantly. Your 2026 Medicare premiums are based on your 2024 tax return.
Planning Moves You Should Consider Now
- Review your 2024 tax return for IRMAA exposure
- Understand what counts as MAGI, including IRA withdrawals and capital gains
- Time Roth conversions and asset sales to avoid IRMAA cliffs
- Know your appeal rights with Form SSA-44 after a life-changing event
Yes, your Social Security check is going up 2.8% in January. But between automatic Medicare premium deductions and potential IRMAA surcharges, your actual increase may be less than you expect.
