Why 2026 Social Security Check May Feel Smaller Than Anticipated

The Social Security Administration (SSA) announced a 2.8% cost-of-living adjustment for benefits paid starting in January 2026. While that might sound like a clean, across-the-board raise, the amount that ends up in your bank account is your net benefit; not your gross benefit.

In plain English, that means for many retirees, the real-world boost can feel smaller than 2.8% thanks to automatic deductions, Medicare premium changes and tax withholding.

The 2.8% COLA Is Real, but It’s Applied to Your Gross Benefit

Social Security’s 2026 COLA is 2.8%. The agency’s own fact sheet showed how that plays out for average benefits: The estimated average retired-worker benefit rises from $2,015 to $2,071 — a difference of about $56 a month.

That’s the before-deductions number. Your deposit can be lower because Social Security may withhold money for Medicare premiums, voluntary tax withholding or other authorized offsets.

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Medicare Part B Premium Increases Can Eat Part of the COLA

For most people on Medicare, Part B premiums are deducted automatically from Social Security.

For 2026, the Centers for Medicare & Medicaid Services (CMS) set the standard Medicare Part B premium at $202.90 per month — up from $185 in 2025. Even if your Social Security benefit rises, a higher Part B premium can reduce how much of the COLA you actually feel.

‘Hold Harmless’ Helps Some People, but Not Everyone

There’s a Medicare rule often called the “hold harmless” provision that can prevent your Social Security check from going down solely because Part B premiums rose. However, according to Medicare Interactive, it doesn’t apply to everyone.

For example, some people who are new to Medicare, people who are billed directly or people paying income-related premium surcharges are unaffected.

Higher-Income Retirees May Lose More to IRMAA Surcharges

If your income is above certain thresholds, Medicare adds income-related monthly adjustment amounts (IRMAA) to Part B and Part D. The SSA publishes a 2026 premium chart showing that higher modified adjusted gross income can trigger higher Part B premiums and Part D adjustments.

The important point for your 2026 Social Security deposit is that IRMAA is commonly deducted the same way Part B premiums are. This can make your net increase look much smaller than 2.8%, especially if you crossed into a higher bracket based on your tax return.

If your income dropped due to a qualifying life event, SSA allows you to request a lower IRMAA determination (including via SSA-44).

Part D-Related Costs Can Also Shrink the Net Boost

Even if you don’t pay IRMAA, your Part D plan premium can change year to year. If your plan premium rises and you have it deducted from your Social Security payment, that’s another way the COLA can feel “missing.”

Medicare’s 2026 cost document also noted a 2026 Part D national base premium of $38.99, which is used for some Part D calculations like late enrollment penalties and income-related adjustments.

Voluntary Federal Tax Withholding Can Make Your Deposit Look Smaller

You can ask Social Security to withhold federal income taxes from your benefit. If you opted in (or increased withholding after a surprise tax bill), your net payment can rise less than the COLA even though your gross benefit went up.

Separately, more retirees owe tax on a portion of benefits as income rises. While the exact tax outcome depends on your full situation, it’s worth knowing the Social Security income thresholds used to determine benefit taxation are a common pinch point, as they haven’t historically been indexed for inflation, pulling more people into taxation over time.

Other Reasons You Might Not See the Full 2.8% in Your Deposit

Even if Medicare and tax withholding don’t explain it, a smaller net increase can happen if:

• You have other premiums deducted, like certain Medicare plan premiums

• Your benefit is subject to a legally required offset, such as garnishments or specific debt collections that the SSA is required to observe

• SSA is recovering a prior overpayment

What To Do if Your January 2026 Deposit Looks ‘Off’

1. Compare gross vs. net: Look at your benefit letter or online account to see what changed in terms of your gross benefit, Medicare deductions and withholding.

2. Confirm Part B premium and any IRMAA: The standard Part B premium for 2026 is $202.90, but your amount can be different if you’re in a protected group or paying IRMAA.

3. Review Medicare premium deductions: Medicare notes that most people have Part B deducted from Social Security automatically.

4. If IRMAA seems wrong, consider an appeal path: SSA provides an option to request a reduction for certain circumstances.

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This article originally appeared on GOBankingRates.com: Why 2026 Social Security Check May Feel Smaller Than Anticipated