Social Security COLA: Here's How Much Extra Income the Average Retiree Can Expect Next Year

What is arguably the most critical question for many retirees this year was recently answered. The Social Security Administration (SSA) announced on Oct. 24, 2025, that the 2026 cost-of-living adjustment (COLA) would be 2.8%.

However, there's a natural follow-up question: How much extra income can the average retiree expect next year? Here's the official answer – and the real answer.

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Simple math

According to SSA, the average monthly Social Security benefit for all retirees in 2025 was $2,015. Only simple math is required to determine how much the average retiree benefit will be next year. We can multiply $2,015 times 2.8%, and then add the result to the initial $2,015.

Actually, no number crunching is needed. SSA has already done it for us. The agency revealed in its 2026 Cost-of-Living Adjustment (COLA) Fact Sheet that the average monthly Social Security benefit for all retired workers next year will be $2,071.

What about older married couples who are retired? SSA ran those numbers, too. The average monthly Social Security benefit for these couples in 2025 was $3,120. In 2026, the amount will increase to $3,208.

By the way, if you don't care about averages and want to know the exact amount of your 2026 Social Security benefit payments, you shouldn't have to wait long. SSA will begin mailing notices with the exact details of new benefit amounts in early December. If you want to see the information even sooner, you can check your "my Social Security" account online.

A fly in the ointment

Will the average retiree begin seeing an additional $56 per month in their checking account or savings account in January? Um, no. There's a fly in the ointment. And that fly's name is Medicare.

The Centers for Medicare and Medicaid Services (CMS) announced the 2026 Medicare Part B premiums on Nov. 14, 2025. The standard monthly Part B premium will increase by $17.90 in 2026, from $185 to $202.90.

This premium is automatically deducted from Social Security retirement benefit payments. Instead of receiving the full extra $56 per month from the 2.8% Social Security COLA, the higher Medicare Part B premium will reduce the average retiree's "take-home" amount to roughly $38.

Some retirees will pay higher Part B premiums. If your modified adjusted gross income (MAGI) is greater than $109,000 and you file an individual tax return, your Part B premium will be at least $81.20 higher than the standard premium. The same story will apply to any couple with a MAGI of over $218,000 who file joint tax returns.

One other problem

CMS also revealed more information that could increase the amount of money many retirees will have to pay next year. The annual deductible for Medicare Part B will increase by $26, from $257 to $283.

This underscores a broader problem that will likely come as no surprise to most retired workers. The Social Security COLA doesn't accurately reflect the higher prices incurred by older Americans.

In particular, the inflation metric currently used to calculate the annual COLA – the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) – doesn't give sufficient weight to healthcare and other expenses that are typically a greater portion of retirees' budgets, while giving greater weight to costs such as housing that aren't as significant for many retirees.

The official answer and the real answer

The official answer to how much extra income the average retiree can expect next year is $56 per month. However, as we've seen, the actual amount retirees will receive is significantly less – around $38. And those extra dollars probably won't stretch as far as retirees might hope.

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