7. Medicare Premium Changes Could Affect Retirement Budgets
Healthcare remains one of the largest expenses for retirees.
In 2026:
- The standard Medicare Part B premium is about $202.90 per month.
- Higher-income retirees may pay additional IRMAA surcharges depending on their income levels.
These surcharges can add hundreds of dollars per month to healthcare costs.
Income planning is critical
Because IRMAA is based on income from two years prior, strategic planning can help retirees reduce future Medicare premiums.
Common strategies include:
- spreading withdrawals across multiple years
- Roth conversions in low-income years
- tax-efficient retirement income planning
