Why Next Year's COLA Won't Be Enough

Barron's Retirement

Read in browser Sponsored By: By Elizabeth O'Brien | Sunday, October 26 It's official: Social Security recipients will get a 2.8% boost to their benefits for 2026. Announced Friday, the cost-of-living adjustment will add an extra $56 to the average retirement benefit, bringing it to $2,071. But most beneficiaries will net a smaller increase, because Medicare Part B premiums, which are automatically deducted from the Social Security checks of everyone on Part B, are also expected to rise, eating into the raise. The government hasn't announced the 2026 Part B premium yet, but the standard premium is projected to be $206.50 a month, up from $185 this year. Higher-income seniors will pay more, as part of the dreaded income-related monthly adjustment amount, better known as the IRMAA surcharge for Parts B and D. (Your income for Medicare purposes is assessed annually based on tax returns from two years prior.) The COLA is designed to preserve Social Security recipients' purchasing power, but it invariably falls short. One way to save is to make sure you're in the best Part D drug plan or Medicare Advantage plan for your needs. Now's the time to do that, since we're in the middle of open enrollment for 2026. And low-income seniors may qualify for the Extra Help program to lower their drug costs. CONTENT FROM: GL HOMES Valencia Raises the Bar on 55+ Florida Living! In 5 prime Florida locations, Valencia communities are thoughtfully designed for active adults who want every day to feel like vacation. Enjoy the best of Florida living with resort-style amenities including elegant clubhouses, state-of-the-art fitness centers, pickleball courts, gourmet dining, and so much more. Discover homes starting from the mid $300s to $2.5M and try before you buy! Learn More BARRON'S LATEST Social Security Announces COLA Increase for 2026 Delayed by the government shutdown, the announcement is sure to disappoint those who had hoped for more. Worried About an AI Bubble? Here's How to Protect Yourself. Stay invested in stocks while lowering your tech exposure. I Bonds' New Interest Rate Will Be Announced Soon Here's the rate that's projected for purchases starting in November. Dividend Stocks Aren't Just for Income Investors A surprising number reinvest their dividends. Here's why. WHAT WE'RE READING Can We Give Our Daughter a $30,000 Wedding Gift Without Involving Uncle Sam? The Moneyist columnist explains the ins and outs of the gift tax to a diligent mother. RESOURCES Social Security Medicare Required Minimum Distribution calculator Getting Ready to Retire? Here's a Planning Guide for the 5 Years Before Your Last Day. Finra's Guide to Social Isolation and the Risk of Investment Fraud The SEC's Guide to Identity Theft, Data Breaches, and Your Investment Accounts Sign up for more newsletters You are currently subscribed as aymentanaze.news@blogger.com Contact us   |   Privacy Notice   |   Cookie Notice Not a subscriber? Subscribe to Barron's now Forward 4300 Route 1 North, South Brunswick, NJ 08852 ©2025 Dow Jones & Company, Inc. All Rights Reserved. Unsubscribe