Get ready for some good news paired with a warning! Social Security payments will go up by 2.8% in 2026, giving seniors and other beneficiaries a neat boost of about $56 each month. This means around $672 extra in a year to help fight rising living costs. The increase starts December 31 for SSI recipients and from January 2026 for all others. More than 75 million Americans – including retirees, disabled workers, survivors, spouses, and SSI recipients – will get this boost. The Social Security Administration (SSA) will start sending notices online to everyone with a My Social Security account in late November. If you want to peek early, you can check your account at ssa.gov/myaccount. But here’s the pinch! While Social Security is going up, Medicare Part B premiums are jumping up by 9.7%! From $185 today to a whopping $202.90 per month in 2026, it’s the biggest rise since 2022. The yearly deductible is also climbing from $257 to $283, making your out-of-pocket medical costs higher. Since Medicare premiums come right off Social Security checks, they will gobble up a large part of the COLA increase. Experts say this means the actual benefit increase will drop to about 1.9%, much lower than the 3% inflation rate. And for seniors with smaller payments, the net rise could be zero. Why are medical costs soaring? More people need outpatient care, and medical inflation is pushing prices up, says the Centers for Medicare & Medicaid Services (CMS). Also, if Congress doesn’t extend the Affordable Care Act (ACA) premium tax credits expiring in 2025, many could face huge insurance price hikes. Even those with job-based insurance will pay 6% to 7% more next year. Healthcare costs are hitting hard: average out-of-pocket spending reached $1,514 in 2023, up 9% from 2020 after inflation, according to KFF. This makes managing household budgets tougher. The SSA suggests everyone create or update their online accounts to check their exact new benefits and get tax papers early. With rising bills and a big Medicare premium leap, seniors must plan carefully. For millions dependent on Social Security, the real extra money in 2026 might be less than it first seems. So, the story is clear: Yes, Social Security payments will rise in 2026, but high Medicare costs are the sneaky villain cutting into your wallet. Stay alert and prepare wisely!