Overview
- The Social Security Administration confirmed a 2.8% cost-of-living adjustment for 2026, lifting the average retirement benefit by about $56 per month starting in January.
- Medicare’s trustees project the standard Part B premium to rise 11.6% to $206.50 in 2026, which will reduce how much of the COLA beneficiaries see in their monthly checks.
- COLAs are currently tied to the CPI-W, while some Democrats advocate switching to the CPI-E or offering a temporary $200 monthly increase for six months in 2026.
- Analyses show limited historical differences by index: a $1,000 monthly benefit in 2005 would be $1,601 under CPI-W today, $1,622 under CPI-E, and $1,555 under the chained CPI.
- Changing the index carries fiscal effects, with chained CPI estimated to cut Social Security’s shortfall by 14% and CPI-E to raise it by 11%, as the retirement trust fund faces possible depletion in 2032.