Particle.news
Download on the App Store

Social Security in 2026: Modest COLA, Higher Medicare Bills, Bigger Payroll Tax Cap

Higher payroll tax cap alongside steeper Medicare premiums will squeeze 2026 budgets.

Overview

  • Benefits rise 2.8% in January, lifting the average monthly retirement check by about $56 to roughly $2,071, according to SSA figures reported by AARP.
  • CMS set the 2026 Medicare Part B standard premium at $202.90 and the annual deductible at $283, both up from 2025.
  • The Social Security wage cap climbs to $184,500 in 2026, exposing an extra $8,400 of earnings to payroll tax and adding about $520.80 for employees or $1,041.60 for the self‑employed.
  • Trustees project the main trust fund will be depleted in the early 2030s, which could leave roughly 77% of scheduled benefits payable absent congressional action.
  • Policy pressure is building as reports highlight increased garnishment risks for overpayments—up to 50% in some cases—and the potential resumption of student‑loan collections that could take up to 15% of benefits, while a CRFB proposal to cap COLAs for top beneficiaries is floated to save about $115 billion over a decade.