Social Security 2026 COLA estimated at 2.7%, but much of it will go to Medicare Part B

Social Security recipients could get a 2.7% raise next year, up from last month's estimate of 2.5%, based on the latest inflation report, according to a new estimate.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the index used to calculate the annual adjustment to Social Security benefits, gained 2.6% in June. Overall inflation rose 2.7% from May's 2.4% increase. The Federal Reserve's inflation goal is 2%.

A cost-of-living adjustment, or COLA, is meant to help Americans keep up with inflation so they can maintain their standard of living year to year. But the hikes are falling short, especially when Medicare premiums, alone, are rising at a faster clip, seniors say. That happened in 2025 and is set to do so again next year...