2026 COLA Gain Shrinks Fast

Social Security’s 2.5% 2026 COLA added ~$50 monthly for the avg. retiree, but Medicare Part B took ~$18, leaving only ~$32 reaching accounts.
That meant Medicare consumed nearly 36% of the full COLA increase before most beneficiaries received their net Social Security payment.
The standard Part B premium climbed from $185 in 2025 to ~$203 in 2026, a jump near 10% automatically deducted from many checks.
Higher-income retirees faced steeper losses. First-tier IRMAA hikes took ~$25 monthly, swallowing 50% of the COLA; second-tier hikes took ~$36, or 72%.
A key mismatch drove the squeeze: COLA used CPI-W, not an elderly-focused index that weights healthcare and housing more heavily.
For retirees on fixed incomes, the headline COLA mattered less than net income after Medicare, making healthcare cushions in withdrawal plans especially important.