There's a reason so many people find retirement to be a stressful period of life. Although it's nice not having to report to a job every day, money can easily get tight in retirement -- especially when you factor in healthcare costs.
Healthcare tends to be a large expense for people as they get older. And if you're a retiree without a lot of savings, it may be a huge burden.
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Part of the problem is that Medicare costs tend to rise from one year to the next year. And 2026 is shaping up to be no exception.
In 2026, the standard monthly Medicare Part B premium is rising from $185 to $202.90, an increase of $17.90 per month. That's a pretty large jump from one year to the next, especially when you consider that the annual deductible for Medicare B is also rising from $257 to $283.
Also, while Social Security benefits are getting a decent raise in 2026, it's not overly generous. In 2026, Social Security is in line for a 2.8% cost-of-living adjustment.
The average monthly benefit is expected to rise by $56 once that takes effect, according to the Social Security Administration. But that increase doesn't account for a rise in Part B. When we factor in that extra $17.90, it's going to leave many older Americans with even less of a Social Security raise.
But while the standard monthly Medicare Part B premium is rising to $202.90 in the new year, some enrollees will have to pay even more for their Part B coverage. Here's how to know if you're part of that group.
Will you be subject to surcharges on your Medicare premiums in 2026?
If you're a higher earner, you may be used to losing out on certain tax breaks. Another pitfall of having a higher income is that it may result in you paying more for Medicare.
Higher earners are subject to income-related monthly adjustment amounts, or IRMAAs, that can drive up the cost of Medicare Part B. Here's what the income limits and surcharges look like for 2026:
|
Medicare Enrollees With Full Part B Coverage | |||
|---|---|---|---|
| If you're single with a modified adjusted gross income of : | If you're single with a modified adjusted gross income of : |
Your IRMAA Will Be: |
Your Total Monthly Part B Premium Will Be: |
| Less than or equal to $109,000 | Less than or equal to $218,000 |
$0.00 |
$202.90 |
| Greater than $109,000 and less than or equal to $137,000 | Greater than $218,000 and less than or equal to $274,000 |
$81.20 |
$284.10 |
| Greater than $137,000 and less than or equal to $171,000 | Greater than $274,000 and less than or equal to $342,000 |
$202.90 |
$405.80 |
| Greater than $171,000 and less than or equal to $205,000 | Greater than $342,000 and less than or equal to $410,000 |
$324.60 |
$527.50 |
| Greater than $205,000 and less than $500,000 | Greater than $410,000 and less than $750,000 |
$446.30 |
$649.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 |
$487.00 |
$689.90 |
Source: CMS.gov
Keep in mind that IRMAAs are based on your income from two years prior. So whether you'll be subject to IRMAAs in 2026 hinges on your 2024 income, not 2025.
You should also know that IRMAAs apply to Part D drug plans as well as Part B. Unlike Part B, though, there’s no standard monthly premium for Part D. So your plan costs and total costs will depend on the coverage you’ve chosen and what your income looked like in 2024.
Prepare now for higher costs
Just because you earned enough money to be subject to IRMAAs doesn’t realize you’re rolling in wealth. If you’re right on the cusp of having to deal with IRMAAs, those higher costs could upend your retirement budget. So it’s important to know what costs you’ll be in line for.
It could also pay to work with a financial advisor or accountant on ways to legally reduce your taxable income. That could get you out of paying more for Medicare in future years, even if that’s unavoidable in 2026.
