Why Some Social Security Recipients Could See a Smaller Check in the Coming Months, Even After the 2026 Cost-of-Living Increase

Millions of retirees and beneficiaries started 2026 expecting a modest boost in their monthly Social Security checks thanks to this year’s cost-of-living adjustment (COLA), an increase designed to help benefits keep pace with rising living costs.

But for some recipients, the net amount hitting their bank account could end up smaller than expected, or even smaller than earlier payments they received this year, despite the COLA boost.

That’s not because Social Security is cutting benefits. It’s because of a few real, technical changes that affect the amount you actually receive after deductions, and these changes are already playing out this year.

Here’s what’s happening, and why millions of beneficiaries are confused or surprised when they check their deposits.

1. COLA Is a Gross Increase — But Your Net Deposit Depends on Deductions

The Social Security Administration announced a cost-of-living adjustment for 2026, reflecting higher inflation and rising costs. That means your gross benefit, the amount Social Security calculates you’re entitled to, went up this year.

However, that doesn’t always translate to more net cash in your hand.

That’s because deductions are taken from your monthly payment before it’s deposited, and if those deductions rise faster than your COLA adjustment, your net deposit can feel smaller, even though your benefit technically increased.

The most common deduction affecting retirees is Medicare premiums, especially Part B (medical insurance) and Part D (prescription drug coverage).

2. Medicare Premiums Increased in 2026, And They Come Out of Your Check

Medicare Part B premiums increased heading into 2026, and most Social Security beneficiaries have these premiums automatically deducted from their monthly checks.

That means a larger part of your benefit may be going to health coverage, leaving less left over.

For example, if your gross benefit went up by $50 because of COLA, but your Medicare Part B premium went up by $60 or more, you could see less money deposited than you did in late 2025.

On top of base premiums, some people pay an Income-Related Monthly Adjustment Amount (IRMAA) if their income crosses certain thresholds. That surcharge can add even more to your Medicare costs and further reduce your net benefit.

The government now publishes updated Medicare premium and deductible amounts each year, and 2026’s changes are already reflected in beneficiaries’ accounts.

That means some people are seeing higher withholdings come out of their Social Security, even though the gross COLA benefit increased.

3. Income Changes from Previous Years Can Trigger Higher Premium Tiers

Another factor: The Social Security Administration and Medicare base some premium adjustments on your income reported two years ago.

If your income increased in 2024, perhaps due to retirement account withdrawals, capital gains, rental income, or consulting work, that can bump you into a higher premium tier this year.

Those increases don’t coincide with the COLA boost.

So instead of feeling like your benefit went up, you feel like you’re getting less, because more of your benefit is being siphoned off for health premiums.

4. Overpayments and Deductions Can Also Cut Into Your Net Check

In some cases, the Social Security Administration continues to recover previous overpayments by making deductions from current benefits.

If you were notified in past years that you were overpaid, for example, because of income misreporting, administrative errors, or delayed information, the SSA may reduce your monthly benefit to recoup that overpayment.

That’s another reason some retirees see smaller net deposits today compared to earlier this year.

These recovery deductions are separate from COLA and premiums, but they can add up and leave you with less in your bank account.

5. Withholding Preferences and Tax Considerations

Some Social Security recipients choose to have federal income tax withheld from their monthly checks.

If you updated your withholding preferences recently, for example, to account for other income, that could also reduce your net Social Security deposit.

In other cases, beneficiaries who didn’t withhold taxes in prior years are now having more tax withheld to avoid a large tax bill, and that reduces the amount deposited each month.

This isn’t a cut to your Social Security benefit.

It’s just money sent to the IRS before the rest is deposited, and it can feel like a smaller check when you look at your bank statement.

What You Can Do if Your Deposit Seems Smaller

If your Social Security check feels lighter than expected this year, there are a few steps you can take to understand why:

• Check your Medicare premium amounts — these are often deducted before deposit.
• Review your most recent SSA and Medicare notices — IRS and SSA mail these when adjustments occur.
• Log into your My Social Security account — it should show deductions and gross benefit amounts.
• Contact SSA directly if you believe a deduction is incorrect or unexpected.

Most of the changes this year are administrative and predictable once you dig into the details, but they can be surprising the first time you see them.

Why This Matters Now

As retirees keep a close eye on monthly budgets, especially with inflation and health care costs rising, even a small shift in net deposits can trigger concern.

And since Social Security is expected income, not speculative income like investments, recipients react quickly to any unexplained change.

That’s why so many people are logging into their accounts, checking direct deposit records, and searching online for answers about why their checks “feel smaller.”

Understanding the mechanics behind these changes can help ease anxiety and prevent people from assuming their benefits were cut when what really changed was the deductions, not the gross amount.