Retirees in America are struggling now — and twist from Social Security in 2026 may make it worse

With the cost of Medicare premiums going up next year, things are not looking good for them.

PUBLISHED DEC 11, 2025

Americans waiting at social security office (Cover Image Source: Getty Images | Photo by Justin Sullivan)

The cost of living in America is rising every month in America as people are struggling for basics amidst an affordability crisis. Thousands have been struggling to make ends meet, and retirees who don't have jobs are finding it hard to get by on the Social Security benefits that they depend on.

Representative image of a retired woman checking her funds. (Image credit: Getty Images | Photo by SimpleImages) — Representative image of a retired woman checking her funds. (Image source: Getty Images | Photo by SimpleImages)

Social Security benefits are meant to make life easier for retirees, but rising costs driven by inflation and the government’s policies have proven to be much higher than these benefits could cover. A report in USA Today mentions that 21.8 million seniors are struggling to get by on Social Security alone. These numbers were drawn from a 2025 study. Two-thirds of all seniors who participated in the study said that they were not happy with the amount they are receiving in their monthly checks.

Now, the government has a scheme called the Social Security cost-of-living adjustment (COLA), which is supposed to keep up with rising costs of necessities in the country. As part of this scheme, the amount a retiree will receive as Social Security benefits will go up in accordance with how prices have gone up. The report says that in 2025, beneficiaries received a 2.5% raise on their payments, but 94% of them do not believe that it is enough.

Representative image of a Social Security administrative office. (Image credit: Getty Images | Photo by Veronique D) — Representative image of a Social Security administrative office. (Image source: Getty Images | Photo by Veronique D)

On paper, things look better for 2026 as Social Security benefits will further be increased by 2.8%. Unfortunately, there is a big flaw in all of this, which some retirees might not even be aware of. The government calculates the rise in these benefits based on a formula that takes into account the increase in price of a basket of certain goods and services that urban wage earners may purchase.

This formula, however, does not take the cost of Medicare premiums into account. Even with the 2.8% hike, Medicare is all set to see a massive jump in 2026, which will be difficult for Social Security beneficiaries to deal with, especially those without significant funds in their 401(k) accounts. Between 2024 and 2025, the standard premium for Medicare Part B increased by around $10.30. It is now at $185, which is already quite high. In 2026, these premiums will increase to $202.90.

Representative image of people requiring medical aid. (Image credit: Getty Images | Photo by Richard Baker) — Representative image of people requiring medical aid. (Image source: Getty Images | Photo by Richard Baker)

That’s a 9.7% jump as retirees will have to pay more than $17 extra per month. So, the 2.8% increase, which promises an additional $56 per month, will end up being $38.10 in added benefits after the added Medicare premiums are deducted from the check. These deductions are usually automated for those who signed up for coverage, and that is pretty much most people.

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