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Social Security 2026: COLA Rises 2.8% as Medicare Part B Jumps to $202.90

AARP says many older Americans view the gain as insufficient.

Overview

  • The SSA set a 2.8% cost-of-living adjustment for 2026, lifting the average retirement benefit from $2,015 to $2,071 per month.
  • CMS confirmed the standard Medicare Part B premium at $202.90 starting in January, a $17.90 increase that is typically deducted from Social Security payments.
  • A new seniors' tax deduction beginning in 2026 will let eligible taxpayers 65 and older reduce taxable income by up to $6,000, with phaseouts at higher incomes.
  • Earnings limits for beneficiaries who work will rise next year, to $24,480 for those under full retirement age and $65,160 for those reaching it in 2026.
  • SSDI substantial gainful activity thresholds will increase to $1,690 per month, or $2,830 for beneficiaries qualifying based on blindness, and the payroll taxable wage cap will climb to $184,500.