Retirement planning is an ever-evolving process, and staying informed about changes to Social Security, Medicare, and tax limits is crucial to making the most of your golden years. On this episode of Retire with Ryan, I'm sharing important updates on the 2026 Social Security cost of living adjustment (COLA), projected changes to Medicare Part B premiums, and strategies for managing income in retirement.

The newly announced cost-of-living adjustment (COLA) for 2026 will see benefit checks rise by 2.8%. I break down how the yearly adjustments are calculated, why they matter for seniors, and the impact of inflation on Social Security. I also discuss the expected jump in Medicare Part B premiums, what IRMAA means for higher-income retirees, and important changes to the Social Security wage base and retirement earnings limits.

Whether you're thinking about when to start your benefits or you want to strategize your retirement income, this episode will give you practical tips and resources to help you make the most of your retirement planning.

You will want to hear this episode if you are interested in...

• [00:00] Social Security cost-of-living adjustment (COLA).
• [02:54] COLA trends and historical adjustments.
• [04:48] Social Security benefit updates.
• [10:56] Social Security earnings limit explained.
• [11:56] Social Security and Medicare updates.

What to Expect from Social Security COLA for 2026

After a brief delay caused by a government shutdown, the Social Security Administration (SSA) announced that benefit checks will rise by 2.8% beginning January 2026. This increase is slightly higher than last year's 2.5% and a bit less than the 2024 bump of 3.2%. While not the largest adjustment in history, any increase helps seniors keep pace with the rising costs of essentials like groceries, taxes, and insurance.

How is COLA Calculated?

SSA bases COLA changes on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically by comparing the average index for each month in the third quarter of one year to the same period in the previous year. Since 1972, this approach has pegged benefit adjustments to actual inflation, providing a more predictable and timely increase for beneficiaries. Beneficiaries will receive details about their new benefit amounts in early December.

Medicare Part B Premiums

The base premium for Medicare Part B is predicted to rise from $185 to approximately $206.50 per month in 2026, a significant increase of roughly 11.6%. Final figures will be released later, but even preliminary estimates suggest a noticeable impact, especially for fixed-income retirees.

Income Related Monthly Adjustment Amount (IRMAA) may add further costs to your Medicare premiums if your income exceeds certain thresholds. For 2026, your IRMAA status will be determined by your 2024 tax return, due to a two-year lag in income reporting. Higher earners could see premiums up to $443.90 per month, so it's critical to strategize IRA distributions and capital gains to avoid unnecessary surcharges.

If your financial situation changes, such as a recent retirement, you may appeal IRMAA charges using Form SSA-44. Ryan Morrissey recommends reviewing prior episodes and his blog for more on appealing IRMAA.

Social Security Taxes and Retirement Income Limits

The maximum wage base for Social Security taxes will jump to $184,500 in 2026 (up from $176,100), meaning any income above this threshold won't be subject to Social Security tax.

Retirees collecting Social Security before full retirement age must monitor their earned income. For 2026, the limit rises to $24,480. Earnings above this cut-off will reduce your Social Security benefit by $1 for every $2 earned. Once you reach your full retirement year, the earnings limit increases sharply to $65,160, and after your birthday, there's no limit.

The latest updates to Social Security and Medicare reflect ongoing efforts to help retirees keep pace with inflation and evolving economic conditions. Successful retirement isn't just about knowing the numbers, it's about strategizing your income to minimize taxes, avoid excess premiums, and maximize your benefits.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Download my entire book for FREE

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