--- title: "What the 2026 Social Security COLA Means for Your Medicare Planning | Medicare Blog" description: "The 2026 Social Security COLA will raise benefits by 2.8%, but rising Medicare premiums and IRMAA surcharges could offset the increase. Learn how to prepare." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Article", "@id": "https://dalton-insuranceagency.com/blog/social-security-cola-2026-medicare-planning#article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://dalton-insuranceagency.com/blog/social-security-cola-2026-medicare-planning" }, "headline": "What the 2026 Social Security COLA Means for Your Medicare Planning", "alternativeHeadline": "What the 2026 Social Security COLA Means for Your Medicare Planning", "description": "The 2026 Social Security COLA will raise benefits by 2.8%, but rising Medicare premiums and IRMAA surcharges could offset the increase. Learn how to prepare.", "image": [ "https://dalton-insuranceagency.com/favicon-dia-preview.png" ], "author": { "@type": "Person", "name": "'Tyler Dalton'::text", "jobTitle": "'Licensed Medicare Advisor'::text", "telephone": "+1-334-489-3624", "url": "https://dalton-insuranceagency.com/tyler-dalton-author", "affiliation": { "@type": "Organization", "name": "Dalton Insurance Agency" } }, "publisher": { "@type": "Organization", "name": "Dalton Insurance Agency", "logo": { "@type": "ImageObject", "url": "https://dalton-insuranceagency.com/favicon-dia-preview.png" }, "url": "https://dalton-insuranceagency.com" }, "datePublished": "2025-11-10T00:00:00+00:00", "dateModified": "2026-03-09T04:50:32.507178+00:00", "articleSection": "Social Security", "keywords": "Social Security, Medicare, Annual Enrollment Period, Medicare Advantage, Alabama", "inLanguage": "en", "wordCount": 1039, "articleBody": "What the 2026 Social Security COLA Means for Your Medicare Planning The Social Security Administration just 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 and overall retirement income strategy. Let me break down what's actually changing and why it matters to you. 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[Home ](/) 2. [Blog](/blog) 3. [Social Security]() 4. What the 2026 Social Security COLA Means for Your Medicare Planning [Back to Blog](/blog) November 10, 2025 5 minutees 'Tyler Dalton'::text # What the 2026 Social Security COLA Means for Your Medicare Planning The 2026 Social Security COLA will raise benefits by 2.8%, but rising Medicare premiums and IRMAA surcharges could offset the increase. Learn how to prepare. Share this article [Facebook](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[Pinterest](https://pinterest.com/pin/create/button/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning&description=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning)[Text](sms:?body=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning%0Ahttps%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[Email](mailto:?subject=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning&body=I%20thought%20you%20might%20find%20this%20helpful%3A%20https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)Copy Link[LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[](https://twitter.com/intent/tweet?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning&text=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning) What the 2026 Social Security COLA Means for Your Medicare Planning The Social Security Administration just 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 and overall retirement income strategy. Let me break down what's actually changing and why it matters to you. 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. Here's the reality check: while your Social Security is increasing by 2.8%, your Medicare Part B premium typically comes directly out of that check. For 2026, the standard Part B premium is projected to increase as well. This means your actual "take home" increase may be less than you expect. What this means for you: Don't assume that extra $56 is all yours to spend. Wait until you see your actual January payment before making any budget changes. The Medicare premium deduction happens automatically, so you'll want to know your real net increase. If You're Still Working: Watch Out for Hidden Benefit Reductions Here's something that catches a lot of people off guard: if you're under full retirement age (currently 67 for most people) and you're collecting Social Security while still working, there are earnings limits that can reduce or even eliminate your monthly benefit. For 2026, here are the new thresholds: If you're under full retirement age for the entire year, you can earn up to $24,480 (up from $23,400 in 2026). For every $2 you earn above that limit, Social Security withholds $1 in benefits. Earn significantly more, and your benefit could zero out completely. If you reach full retirement age during 2026, you get a higher threshold: $65,160 for that year. Above that, they withhold $1 for every $3 earned. The good news? Those withheld benefits aren't lost forever. Social Security adds them back into your benefit calculation once you reach full retirement age. But in the meantime, it can create serious cash flow problems if you're not expecting it. Why This Matters for Your Medicare Decisions When we sit down to review your Medicare options during Annual Enrollment Period, one of the first questions I ask is: "What's your actual monthly income after Medicare premiums?" That number determines: Whether you qualify for Extra Help with prescription drug costs If you're subject to IRMAA (Income-Related Monthly Adjustment Amount) surcharges on Medicare Part B and Part D What you can realistically afford in out-of-pocket costs if you're considering a Medicare Advantage plan versus a Medicare Supplement A 2.8% COLA might sound modest, but IRMAA is a cliff surcharge—meaning 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 income, so that Social Security increase won't impact your 2026 IRMAA status—but it will matter for 2027. Planning Moves You Should Consider Now Review your 2024 tax return. If you reported more than $109,001 in modified adjusted gross income ($218,001 for joint filers) on your 2024 return, you'll pay higher Medicare premiums in 2026 due to IRMAA. Understand what counts as income. Your MAGI for IRMAA purposes includes your adjusted gross income plus tax-exempt interest. This means traditional IRA withdrawals, 401(k) distributions, pension income, taxable Social Security benefits, and even capital gains all count. Consider timing strategies if you're near a threshold. If you're planning a Roth conversion, selling investments, or making other moves that create taxable income, talk with a tax professional about the IRMAA implications two years out. Know your appeal rights. If your income dropped due to a life-changing event like retirement, marriage, divorce, or loss of income-producing property, you can file Form SSA-44 to request that Social Security use more recent income data instead of the two-year-old return. What This Means for Your Medicare Coverage in 2026 At Dalton Insurance, we're watching these numbers closely because they affect real decisions you're making right now during Annual Enrollment Period (which runs through December 7, 2025). If you're on a tight budget and that extra $56 monthly Social Security increase is meaningful to you, we should talk about whether your current Medicare coverage is the most cost-effective option. Sometimes people stay in plans that made sense five years ago but aren't the best fit anymore. If you're in a higher income bracket where IRMAA applies, we need to factor those surcharges into any Medicare Advantage versus Medicare Supplement comparison. The math changes when you're paying an extra $200+ per month just in IRMAA charges on top of your base premiums. The Bottom Line 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. And if you're still working while collecting benefits, those earnings limits could reduce your Social Security entirely. Now's the time to review: Your 2024 tax return to see if you'll face IRMAA charges in 2026 Whether your current Medicare plan still makes financial sense If you qualify for any programs that could help with Medicare costs Whether you should adjust your income strategy to avoid IRMAA cliffs in future years Want to review your specific situation? Call us at Dalton Insurance: 334-489-3624. We'll walk through your actual numbers—Social Security, Medicare premiums, IRMAA status, and coverage options—to make sure you're keeping as much of that COLA increase as possible. We work with clients throughout Auburn, Opelika, Dadeville, Alexander City, and Troy. Serving Alabama Medicare beneficiaries for over 15 years. Written by Tyler Dalton Dalton Insurance 334-489-3624 Medicare has neither reviewed nor endorsed this information. , "publisher": { "@type": "Organization", "name": "Dalton Insurance Agency" }, "datePublished": "2025-11-10T00:00:00.000Z", "image": "https://daltoninsurance.com/assets/medicare-cola-2026-cover.jpg", "keywords": "Medicare, Social Security, COLA 2026, IRMAA, Medicare premiums, retirement income, Medicare planning, Medicare Advantage, Medicare Supplement, Alabama Medicare, Dalton Insurance, Tyler Dalton", "mainEntityOfPage": "https://daltoninsurance.com/blog/social-security-cola-2026-medicare-planning" } Share this article [Facebook](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[Pinterest](https://pinterest.com/pin/create/button/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning&description=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning)[Text](sms:?body=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning%0Ahttps%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[Email](mailto:?subject=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning&body=I%20thought%20you%20might%20find%20this%20helpful%3A%20https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)Copy Link[LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning)[](https://twitter.com/intent/tweet?url=https%3A%2F%2Fdalton-insuranceagency.com%2Fblog%2Fsocial-security-cola-2026-medicare-planning&text=What%20the%202026%20Social%20Security%20COLA%20Means%20for%20Your%20Medicare%20Planning) !['Tyler Dalton'::text, Medicare advisor at Dalton Insurance Agency](/assets/tyler-headshot-DgKnxokr.jpg) ## About the Author 'Tyler Dalton'::text 'Licensed Medicare Advisor'::text 'Tyler Dalton'::text is a licensed Medicare advisor specializing in helping seniors navigate Medicare enrollment and coverage options. 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