October 14, 2026 (official): The Social Security Administration (SSA) has announced that the 2027 Social Security COLA is 3.6%, according to The Senior Citizens League (TSCL). Starting January 1, 2027, the average retired worker’s check will increase by about $75 per month, from $2,087.52 to $2,162.67. People receiving Supplemental Security Income (SSI) will see the increase on December 31, 2026.
The 2027 COLA is 0.8 percentage points higher than the 2026 COLA of 2.8%. It is the largest increase since 2023, when the COLA was 8.7%. The final number came in slightly above TSCL’s September forecast of 3.5% because September’s CPI-W rose to 3.9%. July’s CPI-W was 3.4%, and August’s was 3.5%, and SSA averages those three months to set the COLA. TSCL says the COLA is slightly above the historical average, tied for 18th out of the 52 COLAs announced since 1975.
Even so, TSCL Executive Director Shannon Benton said, “Another year, another COLA that falls short of expectations.” Rising prices this year, driven in part by higher fuel costs, mean many seniors have already been paying more for months before the increase reaches their checks.
What this means for people with Medicare: CMS will announce the 2027 Part B premium in November 2026. Most people have this premium deducted from their Social Security check, so it will affect how much of the $75 increase you actually keep. The Annual Enrollment Period runs October 15 through December 7, 2026, so it’s a good time to review your plan and ensure your 2027 plan matches your health and budget needs.
The Social Security Administration (SSA) announces each year’s Cost-of-Living Adjustment (COLA) in October. To set it, SSA compares the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July through September with the same three months of the year before.
On October 14, 2026, SSA announced the Social Security 2027 COLA is 3.6%, up from 2.8% in 2026. The average retired worker will get about $75 more per month starting January 2027.
But a higher COLA doesn’t always mean more money in your pocket. Medicare premiums tend to rise alongside it.
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Local, licensed insurance agents with 25+ years of combined experienceThe COLA applies to everyone receiving Social Security, retirees, survivors, and people on disability. Supplemental Security Income (SSI) recipients also receive it. SSI payments increase on December 31 of the prior year. Most Social Security payments increase starting in January of each year.
In October 2025, the SSA announced a 2.8% COLA for 2026, about $56 more per month for the average retired worker. At the same time, Medicare raised the standard Part B premium from $185 to $202.90 — a $17.90 jump (9.7%). According to the Senior Citizens League, that was the second-largest Part B premium increase in the program’s history. Here’s what that math looked like:
+$56.00 — COLA increase
−$17.90 — Part B premium increase
= $38.10 net monthly gain
People subject to IRMAA (Income-Related Monthly Adjustment Amounts) — those who pay higher premiums based on income — saw even less.
Data from the Social Security Administration. The years shown are when the increase took effect.
Since automatic COLAs began in 1975, the average annual increase has been about 3.7%, boosted by double-digit increases in the late 1970s and early 1980s. Over the past 10 years, COLAs have averaged about 3.1%. At 3.6%, the 2027 COLA is close to the long-term average and higher than the most recent one.
Most people with Medicare Part B have their premium automatically deducted from their Social Security check. So the October raise rarely hits your bank account until January.
CMS will announce the 2027 Part B premium in November 2026. Based on the 9.7% jump in 2026, another increase is possible. One protection to know: the hold-harmless provision prevents your benefit from dropping below the prior year’s amount if the Part B increase exceeds your COLA dollar gain. But this doesn’t apply to new enrollees or people subject to IRMAA.
Agent tip:
“Even a small COLA increase can push your income into a higher IRMAA bracket, raising your Part B and Part D premiums. A licensed insurance agent can check your bracket and compare plan options to offset rising costs.”
Some Medicare Advantage plans offer a “Part B giveback,” also called a Part B premium reduction. These plans credit back part or all of your monthly Part B premium through your Social Security check, leaving you with more each month.
To qualify, you must be enrolled in both Part A and Part B, live in the plan’s service area, and pay your own Part B premium. Not all plans include this benefit, and availability and amounts vary by area, so comparing your options carefully matters.
According to SSA, the average retired worker’s benefit will be about $2,170 per month after the 2027 COLA. The estimated cost of living for one person in the U.S. is about $2,700 per month, so the average benefit will still fall about $530 short every month.
According to the Senior Citizens League’s 2026 Loss of Buying Power report, Social Security benefits have lost 13.7% of their buying power from 2016 to 2026. Your benefit is now worth about 86 cents on the dollar compared to 10 years ago. The Senior Citizens League estimates senior prices rose 43.55% over that period, well above the CPI-W’s 37.60%. The Senior Citizens League’s 2026 Senior Survey found that about 13% of seniors, an estimated 7+ million people, get by on less than $1,000 per month.
In its October 2026 COLA announcement, TSCL pointed out that the COLA always arrives late. Prices go up right away, but benefits don’t adjust until the following January, so seniors absorb higher costs for months in the meantime.
The COLA formula uses the CPI-W, a price index for urban wage earners and clerical workers, not retirees. It underrepresents healthcare, housing, and prescription drug costs. Between 2010 and 2024, COLAs rose 58% while retiree expenses rose 73%, according to Investopedia.
Many advocates support switching to the CPI-E (Consumer Price Index for the Elderly), which better reflects what seniors actually spend. Contact your representatives or follow The Senior Citizens League to support this effort.
A higher COLA doesn’t always mean more money in your pocket. If your 2025 income could trigger IRMAA in 2027, increased Medicare costs may offset part of your benefit increase. Call (623) 223-8884 to see how a licensed agent can help you explore coverage options and make the most of your COLA increase.
No-cost, unbiased serviceCompare all major plans and carriers Local, licensed insurance agents with 25+ years of combined experienceSeptember 12, 2026: The Senior Citizens League (TSCL) lowered its 2027 Social Security COLA forecast to 3.5%, down from 3.6% in August 2026, but still well above the 2.8% COLA for 2026. If the projection holds, TSCL estimates the average Social Security benefit would increase by $67.90 per month, from $1,940.08 to $2,007.98.
August’s CPI-W came in at 3.5%, up from July’s 3.4%. With only one month of inflation data left before the official announcement, TSCL Executive Director Shannon Benton said the main risk now is volatility: “The biggest thing we’re watching with the COLA announcement coming are short-term shocks to the economy that push inflation way up or down in the next 30 days.” The Social Security Administration is expected to announce the official 2027 COLA on October 14, 2026, in about a month.
August 12, 2026: The Senior Citizens League (TSCL) lowered its 2027 Social Security COLA forecast to 3.6%, down from 3.8% in July but still above the 2.8% COLA for 2026. If the projection holds, TSCL estimates the average Social Security benefit would increase by $69.75 per month, from $1,937.53 to $2,007.28. July’s CPI-W came in at 3.4%, and August and September inflation data will help determine the final adjustment. The Social Security Administration is expected to announce the official 2027 COLA on October 14, 2026.
July 14, 2026: The Senior Citizens League (TSCL) held its forecast steady at 3.8%, unchanged from last month and still a full percentage point above 2026’s 2.8% COLA. TSCL now estimates that if the forecast holds, average Social Security benefits would rise by $73.62 per month, from $1,937.53 to $2,011.15. The percentage held despite broader inflation data cooling slightly in June. No official number until the SSA announcement in October 2026.
June 10, 2026: The Senior Citizens League (TSCL) revised its forecast to 3.8%, based on updated Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data that currently tracks 4.4% over the last 12 months. If that holds, the average person receiving Social Security would get $77 more per month, raising the average benefit from $2,026.41 to $2,103.41. No official announcement until October 2026.
May 12, 2026: TSCL initially forecast 3.9%, adding about $81 per month. Revised down to 3.8% the following month as new CPI-W data came in.
Possibly. If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), up to 50–85% of your Social Security benefit may be taxed. A COLA raise can push you over those limits. Talk to a tax professional to plan ahead.
Yes. If a life event, like retirement or a spouse’s death, lowered your income, file SSA Form 44 with your local Social Security office. If approved, Medicare will use your more recent income to recalculate your premium and reduce your costs.
Yes. The same percentage applies to everyone receiving Social Security, no matter when you claimed. Your dollar gain will be larger if your base benefit is higher, and smaller if you claimed early at a reduced rate.
If you’re “dual eligible,” Medicaid may cover your Part B premium, so a premium increase may not come out of your check. You may also qualify for a Medicare Savings Program. Call (623) 223-8884 to find out at no cost.
Yes. People receiving Social Security Disability Insurance (SSDI) get the same annual COLA as retired workers. The 2027 increase of 3.6% will apply to all disability payments starting in January 2027.
Read more by Renee van Staveren
Since 2009, I've been writing about complicated, technical issues, with the goal of making topics like Medicare and healthcare easier to understand. I've been writing about Medicare since 2021 and healthcare since 2019. I am an AmeriCorps alumni. I enjoy gardening, reading, and DIYing.
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