The 2026 Social Security cost-of-living adjustment (COLA) has finally been announced after a short delay, so seniors can now figure out how much they'll get from the program next year. But planning your 2026 budget is tricky because the amount that will be charged for Medicare Part B premiums hasn't been announced.
If you're enrolled in both programs, you likely have your Part B premiums taken directly from your Social Security checks. Even though the amount of the Medicare Part B premium in 2026 is unknown, the Medicare Trustees Report made a projection earlier this year that you can use as a baseline when figuring out what your take-home Social Security benefit will be in 2026.
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The standard Medicare Part B premium may crack $200 per month for the first time in 2026
In 2025, Medicare beneficiaries pay $185 per month for their Part B premiums. This is up a little more than $10 over the $174.70 Part B premiums in 2024. Some high earners can pay nearly $629 per month, though this is uncommon.
Medicare premiums tend to increase a little each year, but 2026's increase could be more painful than most. The 2025 Medicare Trustees Report, released in June, predicted a $206.20 premium for 2026 -- an increase of $21.20 per month.
This isn't definite yet but it's likely close to the actual 2026 Part B premium you'll see. You can use it as a starting point if you'd like to estimate your take-home Social Security benefit for next year.
Start by adding the 2026 Social Security COLA percentage to your existing checks to estimate your benefit amount next year. Then, subtract $206.20 from this to see what's left.
If the amount you wind up with is less than your current checks, don't panic. Medicare has a hold-harmless provision that prevents increasing premiums from shrinking your Social Security checks. If the premium increase is greater than your COLA, you'll continue to receive the same benefit in 2026 that you get right now.
Planning your 2026 retirement budget
Your Part B premiums are only part of the healthcare costs you could encounter next year. If you need medical care, you could also have deductibles and copays.
You may be able to estimate how much these could amount to by looking at how much you've paid for them so far in 2025. But keep in mind that Medicare's deductibles may also increase next year.
You'll also have living costs to plan for, and these may have also gone up throughout 2025, due to inflation. It's unlikely that your Social Security checks will be enough to cover all of your costs next year, even with the COLA. So you'll need to find ways to cover your remaining expenses.
There are several things you can try, including:
- Relying more on personal savings: This is your easiest option if you have a substantial nest egg. Withdraw a little more from your retirement accounts to cover what Social Security doesn't.
- Take a part-time job: This will give you a steady paycheck that can help supplement your checks without locking you into a 40-hour workweek.
- Cut back costs: If possible, reduce spending on discretionary items to free up more cash for your essentials.
- Apply for government benefits: Government programs, like Medicaid and Supplemental Security Income (SSI), can help low-income households cover their basic living expenses so they don't have to pay as much for these things out of pocket.
When Medicare releases its official numbers for next year, it'll be time to check them against your preliminary 2026 budget. If you need to, make some changes until you find a plan you think will work for you. Then, put it into practice right away in January. After a month or two, check in with yourself to ensure you're staying on track, and make more adjustments, as needed.
