Social Security recipients can expect a Cost of Living Adjustment (COLA) for 2026, but it will likely be partially offset by higher Medicare premiums.
Recipients are waiting until next month for the official 2026 COLA, which is expected to exceed this year’s 2.5% increase. Early reports suggest it could be 2.7% or 2.8%, based on government inflation data.
The Consumer Price Index (CPI) for August 2025 showed a 0.4% increase, following a 0.2% rise in July. Food prices alone rose 2.7% over the past 12 months, contributing to inflation concerns. The September CPI data will be released October 15, 2025, providing a clearer picture for the final COLA.
Historically, COLA changes have varied: 3.2% in 2024, 2.5% in 2025, and now estimated 2.7% for 2026, according to The Senior Citizens League. For the average retiree receiving around $2,000 per month, a 2.7% increase would mean an additional $54 per month.
However, Medicare Part B premiums are also projected to rise. If the current average premium is $185, the predicted increase of $21.50 would bring it to $206.50 per month. After accounting for the premium increase, retirees would see a net gain of about $32.68 per month.
While modest, the increase still offers some extra funds for essentials such as gas, groceries, or clothing, even after higher healthcare costs are considered.
Recipients should monitor both the official COLA announcement and Medicare premium updates, typically released in October, to plan their budgets for 2026.
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