Tuesday, August 11, 2026

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Personal Finance for Life After 60

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The 2026 COLA, and what it means for your budget

A modest cost-of-living adjustment collides with rising Part B premiums. Here is the net effect.

By Margaret Ellison5 min read

Each autumn, the Social Security Administration announces a cost-of-living adjustment, or COLA, meant to keep benefits in step with inflation. A modest increase can be quietly offset by rising Medicare Part B premiums, which are often deducted straight from the same check.

The net effect on your budget

What matters is not the headline percentage but what actually lands in your bank account after premiums. In years when Part B rises sharply, a healthy-looking COLA can translate into a much smaller real raise.

About the author

Margaret Ellison

Senior Benefits Correspondent

Margaret writes about Social Security claiming strategy and retirement timing, translating dense federal rules into plain, actionable language for readers approaching retirement.

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