In a classic case of progress tempered by setbacks, seniors will soon experience a modest increase in their Social Security benefits, even as they face higher costs for Medicare Part B insurance. This dual adjustment, a reflection of broader economic trends, will take effect at the start of 2026.

Beginning in January, Social Security recipients can anticipate a 2.8% cost-of-living adjustment. This increase translates to an average monthly gain of $56, offering some financial relief to many who rely on these benefits for their day-to-day expenses.

Updated: Nov 20, 2025 / 08:17 AM EST

(NewsNation) — Two steps forward, one step back. That might best describe the pending cost-of-living adjustment in Social Security benefits, coupled with a simultaneous increase in the premiums seniors pay for Medicare Part B insurance.

The 2.8% bump in Social Security income takes effect in January 2026 and is expected to bring an additional $56 per month to the average recipient.

That good news, however, is tempered by the rise in Medicare B premiums. That is the part of the medical program for older Americans that covers outpatient care, preventive services and medical equipment.

The standard Part B premium is slated to rise $17.90, nearly 10%, to $202.90 per month, beginning in 2026. It’s considered the second-highest Part B premium increase in dollars, CNBC reported.

There’s more.

The annual deductible for Medicare Part B beneficiaries will increase $26 to $283 in 2026, the Centers for Medicare and Medicaid Services announced. Beneficiaries must pay the deductible for Part B expenses before Medicare covers the costs.