Social Security Benefit Statements Mailed: How Did You Fare?

Category: Social Security

Dec. 5, 2024 - The mail arrived this week and there were our Social Security benefit statements, right when promised. With a modest COLA for 2026 in the offing, we expected to see a small increase in our 2026 benefit. Not everyone's situation will be the same The cost of living adjustment (COLA) for 2026 is 2.8%. That's about $56 on the average monthly Social Security benefit of just over $2,000. People who have higher earning records would see more dollars from that COLA - someone with a $4000 monthly benefit would get a $112 bump. The standard Part B Medicare premium goes from $185 in 2025 to $202.90 in 2026. That is a $17.90 increase (9.6%). So someone with the average monthly benefit nets $38.10/month more in 2026 than in 2025, which reduces the net COLA to a 1.9% increase. Sadly, about half the rate of inflation in the U.S. The problem for some taxpayers (a happy one in the big picture) is that their Modified Adjusted Gross Income might go over the married filing jointly threshold of $218,000. That triggers bigger IRMAA supplements for Parts B and D., or $202.90 in additional Medicare premiums. If someone goes from being under the MAGI threshold one year to over the next, that will more than wipe out any net gain from the SS COLA. Their net 2026 SS benefit will be less than in 2025. People with even higher MAGI will pay even more extra.

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