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.
Comments on "Social Security Benefit Statements Mailed: How Did You Fare?"
Admin says:
If you are disappointed with the amount in your Social Security benefit next year, it might be because you filed too early. The NYTimes just put out an excellent article, "With Social Security , Waiting Is the Hardest Part". Only 8% of people choose to wait until age 70 to claim, most of them well off. The most interesting part of the article, which outlines why some folks don't wait for a benefit that goes up 8% every year after the Full Retirement Age, are when it gives advice on various situations: Healthy and Wealthy, Healthy and Not So Wealthy, Miserable, Not So Healthy, In No Way Wealthy, Pretty good stuff.
JCarol says:
I opted for electronic communication and there were no surprises.
I'd already figured my (and my husband's) 2026 monthly SS deposits by adding our current monthly deposit amounts plus the $185 that we each pay as a 2025 Medicare deduction, then multiplying the sum by 1.028. I subtracted the 2026 Medicare deduction of $202.90 each from that figure and came up with the monthly amount we'll see in 2026. It matches what SS shows for us online.