Bigger Social Security Checks Top 2026 Changes in Retirement Benefits

Frustrated by higher prices for everything from groceries to medication? If you’re receiving Social Security benefits, you’ll get a break in 2026, thanks to a larger increase in payments than the year before.

The 2.8% cost-of-living adjustment is 30 basis points higher than in 2025, according to the Social Security Administration, though a simultaneous increase in Medicare premiums will erode some of the gain.

Here’s a closer look at those and other changes in government benefits for US retirees:

1. COLA Bubbles Up

Next year’s cost-of-living adjustment, or COLA, will add an average $56 a month to checks, taking benefits from $2,015 to $2,071. In a September 2025 AARP survey, however, 77% of older adults said that the bump would not be enough to cover expenses amid inflation and rising prices. It’s also lower than the decade-long average increase of 3.1%. To provide more details, Social Security officials began sending notices to beneficiaries via their My Social Security accounts as well as by regular mail in November. 

2. Medicare Part B Increases

According to the Centers for Medicare & Medicaid Services (CMS), nearly 63 million people in the US are enrolled in Medicare Part B, which covers doctor visits, outpatient hospital services, certain home health services and durable medical equipment. As of 2026, thanks in large part to price changes and estimated increases in usage, Medicare Part B enrollees — including individuals with incomes of  $109,000 or less and joint-filers with $218,000 or less — will see their standard monthly premium increase to $202.90, up $17.90 from $185 in 2025. People with higher incomes must also pay progressively pricier adjustment fees, which further increase their premiums. Meanwhile, the annual deductible for all Medicare Part B beneficiaries will rise to $283 in 2026, up from $257 in 2025. 

3. A Tax Break for Older Adults

Under federal legislation passed in July, US taxpayers age 65 or older by the end of 2025 may be eligible for a significant tax break: a temporary deduction of up to $6,000 per individual filer, in addition to their standard deduction. While most filers won’t notice the change until the 2026 filing season begins, the deduction, which applies to individuals with income of up to $75,000, extends through 2028. The deduction is phased out at higher income levels.

4. Social Security Tax Payments

Current federal tax rules will still apply to Social Security income in 2026, requiring Americans to pay taxes on up to 85% of their benefits. In addition, the 12.4% tax on workers’ earnings, which provides the primary funding for Social Security through 6.2% FICA withholding and 6.2% employer contributions, will remain the same in the new year. 

The amount of income subject to the tax will increase, however. In 2026, you’ll need to pay Social Security taxes on work income of up to $184,500, up from $176,100 in 2025. Earnings above $184,500 as well as income from non-work sources, such as investments, interest and/or retirement account withdrawals, are not subject to Social Security taxes.