Social Security COLA increase doesn't match actual deposit - payment lower than stated in SSA letter

Yes, this is most likely due to Medicare premium increases. Your COLA letter shows your gross benefit amount, but what gets deposited is your net amount after Medicare Part B (and possibly Part D) premiums are deducted. The standard Part B premium went up by about $10 this year, but depending on your income from two years ago (IRMAA), it could be substantially more. Check your Medicare premium notice which should have come separately from your COLA letter.

happened to me to!!!!! check if they taking out taxes now. my daughter helped me look at my paperwork and we figured out they started taking taxes out cuz my income went up from my pension. they never TELL you when they do this stuff!!

This exact thing happened to me. Called SSA and was on hold for 2.5 HOURS only to be told they started taking out my Medicare Advantage plan premium directly from my SS check when it used to be billed separately. Plus my Part B premium went up because of IRMAA (income-related monthly adjustment amount) based on my 2023 taxes when I sold some property. The COLA letter doesn't account for these deductions - it only shows your gross benefit amount. The MySSA website is notoriously slow to update with new payment details in January.

I'd CALL them asap. When u get the COLA letter its supposed to be what u actually get. The online account doesnt update til like the 3rd week of January ususally. If the amount is different than the COLA letter somethings wrong. could be computer error or identity theft.

I had to call the SSA about a similar issue last month and was getting nowhere with the regular 800 number. After 3 days of trying, I used Claimyr.com to get through and actually spoke with a representative within 20 minutes. You can see how it works at https://youtu.be/Z-BRbJw3puU. Saved me hours of frustration and the agent was able to pull up my payment details and explain every deduction. Apparently I had a change in my Medicare deduction AND they started taking out tax withholding I requested months ago but that hadn't been processed until January.

Just to confirm what others have said - your COLA letter shows your gross benefit before ANY deductions. Things that could be reducing your actual deposit: 1. Medicare Part B premium (increased to $185.30/month for 2025) 2. IRMAA surcharges if your 2023 income was above $103,000 (single) or $206,000 (married) 3. Medicare Part D or Medicare Advantage premiums 4. Federal tax withholding (if you requested it with form W-4V) 5. Repayment of previous overpayments When you call SSA, specifically ask for a breakdown of all deductions from your benefit. They can tell you exactly what's being taken out.

my sister had this happen but it was because she had a garnishment for old student loans. they can take social securty for that now i think??

One other thing to check - if you recently became entitled to benefits on someone else's record (like spousal or survivor benefits) or if someone became entitled on your record, you might be hitting the family maximum benefit (FMB). When multiple people receive benefits on one earner's record, there's a cap on the total amount payable to the family, which could reduce individual benefit amounts. This is less common than the Medicare/tax withholding explanations, but worth mentioning.

For future reference, here's what I learned from my experience: The SSA and Medicare systems don't communicate well. Your COLA letter comes from SSA showing your gross benefit increase. Your Medicare Premium letter comes separately showing what you'll pay for Part B and any IRMAA surcharges. Then if you have a Medicare Advantage or Part D plan, those premiums may be deducted directly from your Social Security. Add in possible tax withholding, and you need to do the math yourself to figure out your actual deposit amount. The online MySocialSecurity account usually doesn't update with the new detailed breakdown until mid to late January.