Utah · Social Security · Medicare · 2026
The 2026 Social Security COLA & Medicare Part B: What Utah Retirees Will Actually Take Home
A 2.8% raise sounds simple — until the Medicare Part B premium takes a bite out of it.
The bottom line
- The 2026 Social Security COLA is 2.8% — up from 2.5% in 2025 (SSA).
- The average retired-worker benefit rises about $56/month, from $2,015 to $2,071 (SSA).
- The 2026 Medicare Part B premium jumps to $202.90 (up $17.90), and the deductible rises to $283 (CMS).
- After the Part B increase, the average retiree's net raise is closer to $38/month.
Every autumn, two numbers decide how much bigger your Social Security check gets in January: the cost-of-living adjustment (COLA), which raises your benefit, and the Medicare Part B premium, which is quietly deducted from it. For 2026 the COLA is 2.8% and the Part B premium is $202.90. Put together, the average Utah retiree keeps less of the raise than the headline suggests. Here's the plain-English math — and why it matters for your income plan.
How big is the 2026 COLA?
On October 24, 2025, the Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, a bit higher than the 2.5% increase for 2025. For the average retired worker, SSA estimates the monthly benefit rises from about $2,015 to $2,071 — roughly $56 more a month, or about $672 over the year. Your personal raise is 2.8% of your own benefit, so higher earners see a larger dollar increase and lower earners a smaller one.
Sources: SSA 2026 COLA fact sheet — ssa.gov/news/en/cola/factsheets/2026.html; CMS 2026 Part B premiums — cms.gov.
Why the raise feels smaller: Medicare Part B
Here's the catch most people miss. If you're on Medicare, your Part B premium is usually deducted straight from your Social Security payment. For 2026, CMS set the standard Part B premium at $202.90 a month — an increase of $17.90 from $185.00 in 2025. The annual Part B deductible also rises, to $283 (up $26 from $257).
So for the average retired worker, the $56 gross COLA is offset by a $17.90 higher premium, leaving a net increase of about $38.10 a month. Higher earners can keep even less, because Part B income-related surcharges (IRMAA) rise too.
The 2026 Utah math, side by side
Using SSA's average retired-worker figures and the standard Part B premium, here's what changes between 2025 and 2026 for a typical retiree who has Part B deducted from their check:
| Monthly (average retiree) | 2025 | 2026 | Change |
|---|---|---|---|
| Average benefit | $2,015 | $2,071 | +$56.00 |
| Part B premium (deducted) | $185.00 | $202.90 | +$17.90 |
| Net take-home (benefit minus premium) | $1,830.00 | $1,868.10 | +$38.10 |
Figures use SSA's estimated average retired-worker benefit ($2,015 → $2,071) and the CMS standard Part B premium ($185.00 → $202.90). Your own numbers depend on your benefit and whether IRMAA applies.
Where the average retiree's monthly COLA raise goes in 2026. Sources: SSA (COLA) and CMS (Part B premium).
What this means for a Utah income plan
More than 447,000 Utahns receive Social Security, including about 330,000 retired workers, and those checks put over $8.6 billion into the state economy each year (AARP, citing SSA). For most of them, Social Security is the foundation — but the 2026 numbers are a reminder that the foundation grows slowly and unevenly. A few planning points:
- Budget the net, not the headline. Plan around the after-premium increase (about $38/month for the average retiree), not the full 2.8%.
- Watch the tax line. A bigger benefit can push more of your Social Security into the taxable range federally, and can affect your Utah Social Security credit. See our Utah Social Security tax guide.
- Mind IRMAA. If your income crosses the thresholds, your Part B premium is higher than $202.90. Our 2026 IRMAA guide explains the brackets.
- Build income you control. Dependable income beyond Social Security — from savings and, where it fits, an annuity — helps cover costs that rise faster than the COLA. Annuity guarantees depend on the issuing insurer's claims-paying ability; there are no guaranteed investment returns.
We help Utah retirees turn Social Security, savings, and other income into a plan that covers rising costs — in plain English, with no pressure.
Talk to a planner →Frequently asked questions
How much is the 2026 Social Security COLA?
The 2026 cost-of-living adjustment (COLA) is 2.8%, announced by the Social Security Administration on October 24, 2025. It is slightly higher than the 2.5% COLA for 2025. The increase appears in benefits paid starting January 2026.
How much more will the average retiree get each month?
The Social Security Administration estimates the average retired-worker benefit rises from about $2,015 to about $2,071 a month — roughly $56 more, or about $672 over the year. Your own raise depends on your own benefit amount.
Why does my raise feel smaller than 2.8%?
For most retirees the Medicare Part B premium is deducted directly from the Social Security check. In 2026 that premium rises from $185.00 to $202.90 — about $17.90 more a month — which offsets part of the COLA. For the average retiree, the net increase after the Part B jump is closer to $38 a month.
What is the 2026 Medicare Part B premium and deductible?
The standard Part B premium for 2026 is $202.90 a month (up $17.90 from $185.00), and the annual Part B deductible is $283 (up $26 from $257), according to CMS. Higher-income beneficiaries pay more through IRMAA surcharges.
When does the 2026 increase start?
The higher Social Security benefit begins with payments for January 2026. SSI recipients see the increase starting with the payment dated December 31, 2025.
Will Utah tax my larger 2026 Social Security benefit?
Utah taxes Social Security, but a state credit can erase that tax for many households, and federal rules tax up to 85% of benefits above certain income thresholds. A larger benefit can nudge some retirees over those lines. This is educational, not tax advice — see our Utah Social Security tax guide and confirm with a tax professional.
Sources
- SSA — 2026 COLA fact sheet: ssa.gov/news/en/cola/factsheets/2026.html
- SSA — "Social Security Announces 2.8 Percent Benefit Increase for 2026" (Oct 24, 2025): ssa.gov/news/en/press/releases/2025-10-24.html
- CMS — 2026 Medicare Parts A & B premiums and deductibles: cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
- AARP — Utah Social Security Quick Facts (citing SSA state data): aarp.org/states/utah/utah-social-security-quick-facts
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, or legal advice. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not connected with any government agency or the federal Medicare program. Insurance and annuity guarantees are subject to the claims-paying ability of the issuing company; product availability and rates vary.