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5 Surprising Ways Seniors Will Get More (or Less) Money In 2026

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The answer to whether seniors will get more money in 2026 is a definitive, yet complicated, "Yes." As of today, December 20, 2025, the Social Security Administration (SSA) has officially confirmed a Cost-of-Living Adjustment (COLA) that will increase monthly benefits for nearly 71 million Americans starting in January 2026. This is the guaranteed increase retirees can expect.

However, the real story for 2026 involves a high-stakes legislative battle for a massive, temporary $200 per month boost, significant increases in Medicare costs that will eat into the COLA, and a final, scheduled increase to the Full Retirement Age (FRA). Understanding these interconnected changes—the guaranteed, the costly, and the potential—is crucial for every retiree planning their budget for the coming year.

The Guaranteed Increase: Official 2026 Social Security COLA Breakdown

Every year, Social Security benefits are adjusted to keep pace with inflation through the Cost-of-Living Adjustment (COLA). For 2026, the SSA has set the COLA at 2.8%. This adjustment applies to all Social Security recipients, including those receiving Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI), as well as Supplemental Security Income (SSI) payments.

How Much More Money Will Seniors Get?

While the 2.8% figure is official, the actual dollar amount depends on your current benefit. The SSA provides estimates for the average increase:

  • Average Retired Worker: The average monthly benefit is estimated to increase from $2,015 to approximately $2,071. This represents a monthly increase of about $56.
  • Average Couple (Both Receiving Benefits): The average benefit for a couple where both spouses receive Social Security is projected to rise from $3,120 to $3,208.
  • SSI Recipients: The 2.8% COLA also applies to SSI benefits, providing a similar percentage increase to those receiving this need-based assistance.

This 2.8% COLA is based on the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year. While a positive step, many senior advocacy groups argue that the CPI-W does not accurately reflect the higher healthcare and housing costs faced by older Americans, leading to a benefit that still falls behind true senior inflation.

The Costly Offset: Medicare Part B Premiums Will Jump

The biggest factor that will reduce the "more money" seniors receive is the scheduled increase in Medicare Part B premiums and deductibles. For most retirees, the Part B premium is automatically deducted from their Social Security check, meaning a higher premium directly reduces the net COLA increase.

For 2026, the Centers for Medicare & Medicaid Services (CMS) has announced significant increases:

  • Standard Monthly Part B Premium: The premium will increase from the previous year’s rate to $202.90 per month. This is an increase of $17.90, or just under 10%.
  • Annual Part B Deductible: The deductible, which is the amount beneficiaries must pay out-of-pocket before Medicare coverage begins, will increase by $26 to $283.

For a senior receiving the average $56 COLA increase, a $17.90 Medicare premium hike means the net monthly increase in their actual take-home benefit is reduced to only $38.10. For some, especially higher-income earners who pay Income-Related Monthly Adjustment Amounts (IRMAA), the Medicare increase may fully or nearly fully negate the COLA.

The Legislative Wildcard: Will You Get an Extra $200 Per Month?

Beyond the guaranteed COLA, the most significant potential for seniors to get *substantially* more money in 2026 rests on the passage of key legislative proposals currently before Congress. These bills, while facing political hurdles, represent the biggest possible boost to retiree income.

1. The Social Security Emergency Inflation Relief Act

This bill, introduced by Senators Kirsten Gillibrand, Chuck Schumer, and others, aims to provide immediate financial relief to seniors struggling with high inflation.

  • The Proposal: A temporary, emergency increase of $200 per month to all Social Security checks.
  • Duration: The increase would last for a period of six months, specifically until July 2026.
  • Impact: If passed, this would be a tax-free boost of $1,200 over the first half of the year, significantly overshadowing the 2.8% COLA. The bill is currently in the introductory phase for the 2025-2026 session.

2. The Social Security Expansion Act

A broader, long-term proposal championed by Senators Bernie Sanders and Elizabeth Warren, this act focuses on both increasing benefits and ensuring the long-term solvency of the Social Security Trust Funds.

  • The Proposal: An across-the-board expansion of Social Security benefits equivalent to approximately $2,400 per year, or $200 per month.
  • Funding Mechanism: The expansion would be funded by applying the Social Security payroll tax to all income above $250,000, eliminating the current cap on taxable earnings.
  • Impact on 2026: While not immediately guaranteed for 2026, the legislative debate around this bill keeps the possibility of a major benefit increase firmly on the table for the near future.

Other Key Social Security Changes Impacting Your 2026 Money

Beyond the COLA and Medicare, several other structural changes to the Social Security program will take effect in 2026, impacting how much money some seniors can collect or earn.

1. The Final Full Retirement Age (FRA) Increase

For individuals turning 62 in 2026 (those born in 1964), the Full Retirement Age (FRA) will reach its final scheduled step-up. Under the 1983 Social Security Amendments, the FRA has been gradually increasing. For this cohort:

  • New FRA: The Full Retirement Age will be 67.
  • Impact: To receive 100% of their primary insurance amount (PIA), these individuals must wait until age 67. Claiming at age 62 will result in a permanent reduction of benefits by approximately 30%. This change is a key factor in future retirement planning.

2. Higher Social Security Earnings Limit

For seniors who work while collecting benefits and have not yet reached their FRA, the annual earnings limit will increase in 2026. This limit determines how much a working senior can earn before their Social Security benefits are temporarily withheld.

  • The Limit: The annual earnings limit for beneficiaries younger than FRA throughout 2026 is $24,480.
  • The Withholding Rule: For every $2 earned above this limit, $1 in Social Security benefits will be withheld.

For those who reach FRA in 2026, the limit is much higher, and the withholding rule is less strict, but the benefit of this change is that working seniors can keep more of their benefits while earning more money.

The Long-Term Outlook: Trust Fund Solvency and Future Reforms

While 2026 brings guaranteed increases, the long-term financial health of the Social Security program remains a prominent topic in Washington, D.C. The combined Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are projected to have sufficient dedicated revenue to pay full benefits until approximately 2037.

After that date, if Congress takes no action, the funds' continuing income would still be sufficient to pay about 80% of scheduled benefits. The legislative proposals mentioned, such as the Social Security Expansion Act, are designed to address this solvency issue by increasing the amount of income subject to the Social Security tax, which would push the depletion date further into the future or eliminate the shortfall entirely.

The debate over the best way to secure the program—whether through taxing higher incomes, adjusting the COLA calculation (e.g., to CPI-E for the elderly), or raising the FRA further—will continue to be a dominant political entity, affecting the financial future of all seniors well beyond 2026.

5 Surprising Ways Seniors Will Get More (or Less) Money in 2026
Will seniors get more money in 2026?
Will seniors get more money in 2026?

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