Short answer: The 2027 Social Security COLA is 3.6%, which adds about $75 a month to the average retired worker’s check starting in January, according to the Social Security Administration. That is about equal to the 3.7% rise in consumer prices over the past year. Medicare Part B is projected to take about $6.60 of that raise, so the average retiree would keep roughly $68 more a month.
| Measure | Amount |
|---|---|
| 2027 COLA | 3.6% (2.8% for 2026) |
| Average retired worker, monthly | $2,095 to $2,170 |
| Aged couple, both receiving benefits | $3,238 to $3,355 |
| Average disabled worker | $1,642 to $1,701 |
| Social Security taxable maximum | $192,300 (was $184,500) |
| SSI federal payment, individual | $1,029 a month (was $994) |
| Projected 2027 Part B premium | $209.50 a month (was $202.90) |
How the 2027 Social Security COLA works
The cost-of-living adjustment tracks a government price index called the CPI-W. The agency compares the average of the third quarter this year with the same quarter a year ago. Nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients are covered, the agency says. SSI payments rise first, on Dec. 31, and Social Security checks rise in January.
The agency’s fact sheet lists the average amounts before and after the 2027 Social Security COLA. A retired worker goes from $2,095 to $2,170. An aged couple goes from $3,238 to $3,355. A widow or widower living alone goes from $1,936 to $2,005.
Why a 3.6% raise may not feel like one
Last year’s raise was 2.8%, and prices are now rising faster than that. The Labor Department’s September consumer price report showed consumer prices up 3.7% from a year earlier. Energy was up 20.4% and gasoline 34.2%. Food rose 2.5% and shelter 3.2%.
The two measures are not identical. The 3.7% figure covers all urban consumers, while the COLA uses a narrower group of wage earners and averages three months. Still, a 3.7% increase on a $2,095 check would be about $77, a little more than the $75 retirees will get. Our look at consumer sentiment shows how households already feel about prices.
Medicare Part B takes a slice
Many retirees have the Part B premium deducted from their check. The standard premium is $202.90 this year. The 2026 Medicare trustees report projects $209.50 for 2027, up $6.60, Yahoo Finance reports. That is a projection, not the final number. The Centers for Medicare and Medicaid Services sets the official premium, and it has announced it in October or November in recent years.
If the projection holds, the premium takes about 9% of the 2027 Social Security COLA for the average retiree. Someone who pays a higher premium because of income, or who buys a Medicare drug plan or a supplement, would keep less. Social Security says people can see their 2027 Medicare premium in their online account starting in late November.
Other 2027 limits
Workers pay Social Security tax on earnings up to $192,300, up from $184,500. The retirement earnings test limit for people under full retirement age rises to $25,560 a year from $24,480. In the year someone reaches full retirement age, the limit is $67,920. The SSI federal payment for an individual rises to $1,029 a month from $994, and for a couple to $1,544 from $1,491. People with a my Social Security account can see their personal COLA up to three weeks early by signing up for digital notices by Nov. 18.
Editor’s take
A 3.6% raise sounds generous until prices rise 3.7%. The 2027 Social Security COLA only stops benefits from losing ground. It does not make anyone richer, and Part B can erase part of it. Check your notice in December, compare it with your Part B premium, and plan your 2027 budget around the net number. The Fed’s rate decision also affects what savers earn on cash.
