COLA season tends to bring a mix of curiosity and questions. You might hear a percentage on the news, see a headline online, or hear a friend mention their check “went up.” And then the practical questions show up right behind it.
How much does that percentage actually change a monthly benefit? When does it hit? Why does the deposit sometimes look different than the headline number? And what about Medicare?
Table of Contents
- What COLA is
- How Social Security Calculated the 2026 COLA
- What 2.8% Looks Like in Real Monthly Numbers
- When The Increase Shows Up and How to Find Your Notice
- Medicare Part B in 2026
- The Hold Harmless Provision
- Ways to adjust your budget for 2026
- If You Work While Receiving Social Security
- Staying Safe from Social Security Scams
- When Money Updates Feel Emotionally Heavy
- Frequently Asked Questions
What COLA is
COLA stands for cost-of-living adjustment. It is the yearly update that changes Social Security and Supplemental Security Income (SSI) benefit amounts when inflation rises according to the measure Social Security uses.
COLA Happens Automatically
If you receive benefits, you do not need to apply for COLA. Social Security applies it and then sends an updated notice showing your new benefit amount.
COLA is a percentage
Because it is a percentage, the dollar increase depends on your current monthly benefit. Two people can both get a 2.8% COLA and see different dollar changes.
COLA is based on a defined inflation index
Social Security uses a consistent method year after year. That is why the COLA is announced in the fall, then shows up in payments starting around the turn of the year.
How Social Security Calculated the 2026 COLA
Social Security bases COLA on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and compares the third quarter (July, August, September) of one year to the third quarter of the next.
For the 2026 COLA, Social Security lists these CPI-W averages:
- Third quarter 2025 average CPI-W: 317.265
- Third quarter 2024 average CPI-W: 308.729
That year-over-year change results in the 2.8% COLA. Social Security displays the calculation directly on its “Latest COLA” page.
If you ever feel like COLA is mysterious, it helps to know that the percentage is tied to a published method and published numbers.
What 2.8% Looks Like in Real Monthly Numbers
A quick way to estimate the change is to multiply your current monthly benefit by 1.028.
Here are a few examples to make the math feel more tangible:
- If your monthly benefit is $1,000, a 2.8% increase is about $28, bringing it to about $1,028.
- If your monthly benefit is $1,500, a 2.8% increase is about $42, bringing it to about $1,542.
- If your monthly benefit is $2,000, a 2.8% increase is about $56, bringing it to about $2,056.
- If your monthly benefit is $2,500, a 2.8% increase is about $70, bringing it to about $2,570.
Social Security’s 2026 fact sheet also provides estimated averages. For example, it shows all retired workers moving from $2,015 to $2,071 on average after the 2.8% COLA.
One small but important distinction: COLA applies to your gross benefit amount. Your net deposit can look different if deductions come out of your check.
When The Increase Shows Up and How to Find Your Notice
Social Security’s COLA page states that the 2.8% COLA begins with benefits payable in January 2026 and that increased SSI payments begin December 31, 2025.
Your COLA notice by mail
Social Security mails COLA notices throughout December. The agency specifically notes that different households receive their notices at different times, so it is normal if someone you know gets theirs first.
Your COLA notice online
Social Security also explains that many beneficiaries can view their COLA notice online through a my Social Security account, often before the paper notice arrives.
Medicare Part B in 2026
When people compare the COLA percentage to what actually hits their bank account, Medicare Part B is often the missing piece.
CMS announced the 2026 Medicare Part B standard premium is $202.90 per month (up from $185.00 in 2025), and the Part B annual deductible is $283 (up from $257 in 2025).
If Part B premiums are deducted from your Social Security benefit, that increase can reduce how much of the COLA increase you see in your net deposit.
Social Security’s press release notes the agency estimates the average monthly benefit increase is about $56 with the 2026 COLA. CMS reports the standard Part B premium increased by $17.90 per month.
So, for someone paying the standard Part B premium through automatic deduction, the net change can feel smaller than the headline, simply because both changes are happening at the same time.
What if your Part B premium is not the standard amount?
Some beneficiaries pay more than the standard premium based on income-related adjustments. CMS includes those details in its annual premium guidance.
Your own notice is the best place to confirm your specific premium and how it is being paid, because it reflects your individual situation.
The Hold Harmless Provision
The “hold harmless” provision is meant to protect certain beneficiaries from seeing their Social Security payment go down because of a Medicare Part B premium increase.
Social Security describes this as a special rule that can protect a beneficiary’s Social Security benefit payment from decreasing due to a Medicare Part B premium increase.
Not everyone is covered by hold harmless, and there are exceptions. But the main idea is simple: for many people who have Part B premiums deducted from Social Security, there is a built-in protection designed to prevent a net drop.
Ways to adjust your budget for 2026
Budgeting around COLA does not have to be complicated. A lot of people do best with a small adjustment that makes the month feel steadier, rather than a full overhaul.
Start with the two numbers that shape your deposit
For many beneficiaries, the most useful starting point is:
- Your updated Social Security benefit amount (from your COLA notice).
- Your Medicare Part B premium amount for 2026 if it is deducted from your benefit. CMS lists the standard premium as $202.90, but your amount may differ.
Those two numbers tell you more than the percentage alone.
Decide what you want the increase to do for you
COLA often works best when it supports something specific, even if it is small. Some people choose to:
- offset higher healthcare costs, especially if Part B premiums increased
- build a buffer for surprise expenses
- support essentials that have crept up over time
None of those choices require a perfect plan. They just give the increase a purpose.
Keep the first change modest
If your net increase ends up being $25, $35, or $50, you do not have to distribute every dollar across ten categories. A steady approach is to adjust one or two areas and let the rest sit as breathing room for a while.
Give it a month or two before making a second change
The start of the year can bring timing quirks and one-time costs. Once you have seen two deposits with the new numbers, you will have a clearer picture of what is really changing.
If You Work While Receiving Social Security
Many people receive Social Security and still work part-time, seasonally, or in flexible roles. If that applies to you, Social Security’s earnings test limits can affect benefits before full retirement age.
Those limits are listed in the 2026 fact sheet and COLA materials.
If you are unsure how the earnings test applies to you, Social Security is the best source for the official rules and your personal record, because the details depend on age and timing.
Staying Safe from Social Security Scams
When COLA news is circulating, scams tend to increase too, simply because people are paying attention.
Social Security has a dedicated COLA page and official notices, and CMS has official premium announcements. That matters because scammers often try to imitate real agencies to create urgency or pressure.
Here are a few red flags that Social Security and federal guidance repeatedly warn about, stated plainly:
- someone threatens you with arrest, suspension of benefits, or legal trouble unless you act immediately
- someone demands payment using gift cards, cryptocurrency, or other unusual methods
- someone tells you to keep the situation secret or not tell your family
If you get a message that feels off, it is OK to pause. You can verify information through official sources rather than responding to a call, text, or email in the moment.
When Money Updates Feel Emotionally Heavy
Even routine changes can stir up worry, especially when money is already tied to health, independence, and future planning. If reading about COLA or Medicare costs brings up anxiety, stress, or a sense of uncertainty, you are not alone in that.
If you want a place to talk through that stress in a way that feels grounded and supportive, Blue Moon Senior Counseling is here. Whether you are feeling anxious, overwhelmed, or just tired of carrying it alone, we can help you work through what is coming up and build coping tools that fit your life.
Reach out to Blue Moon Senior Counseling and we will help you take the next step.
Frequently Asked Questions
1) What is the 2026 Social Security COLA?
The Social Security Administration set the 2026 COLA at 2.8%.
2) When will the 2026 COLA show up in my payments?
Social Security states the increase begins with benefits payable in January 2026, and increased SSI payments begin on December 31, 2025.
3) How did Social Security calculate the 2.8% COLA?
Social Security bases COLA on CPI-W data and compares the third quarter average from one year to the next. For 2026, SSA lists third-quarter averages of 317.265 (2025) and 308.729 (2024), resulting in a 2.8% COLA.
4) What is the Medicare Part B premium and deductible for 2026?
CMS announced the standard Part B premium is $202.90 per month in 2026, and the Part B annual deductible is $283.
5) When will my COLA notice arrive?
Social Security states it mails COLA notices throughout December and notes that people receive them at different times.