The 2027 Social Security COLA Is Out – But You May Not Keep the Full Raise

On October 14, the Social Security Administration (SSA) announced that Social Security and SSI recipients will get a 3.6% cost-of-living adjustment (COLA) in 2027. That’s up from 2.8% this year, and it begins in January 2027.

Since a simple percentage doesn’t mean anything for your retirement plan and budget, let’s look at what the raise means in dollars and how much of it you’re likely to keep.

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What 3.6% looks like at different benefit levels

To find out your gross raise, multiply your current benefit by 1.036. Or, even easier, let us do it for you below:

The SSA also published estimated averages for January 2027:

• All retired workers: $2,095 rises to $2,170 (+$75)

• Aged couple, both receiving benefits: $3,238 rises to $3,355 (+$117)

• Aged widow(er) living alone: $1,936 rises to $2,005 (+$69)

• All disabled workers: $1,642 rises to $1,701 (+$59)

SSI recipients also get a bump. The federal payment standard goes from $994 to $1,029 (+$35) a month for an individual and from $1,491 to $1,544 (+$53) for a couple.

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Gross raise vs. what you actually keep

The above are gross numbers. Most retirees have the Medicare Part B premium deducted from their Social Security check, so any premium increase comes out of the raise before the money reaches the bank.

The 2026 standard premium is $202.90 a month, up $17.90 from $185 in 2025. That jump took nearly a third of last year’s raise. On a $2,000 check, a 2.8% COLA added about $56, and the premium increase claimed $17.90 of it.

The 2027 premium isn’t official yet. CMS typically announces the real number in November. The Medicare Trustees’ projection is about $209.50, an increase of roughly $6.60. Using that projection, here’s what the raise is worth after the premium increase:

The same flat premium increase amounts to more for smaller checks. Someone at $1,000 loses nearly a fifth of the raise, while someone at $3,000 loses about 6%.

Here is what lands in the bank for a retiree at $2,000 a month:

• Now: $2,000 minus $202.90 = $1,797.10

• January: $2,072 minus $209.50 = $1,862.50

At $1,000, the full Part B premium still takes about a fifth of the check: $209.50 out of $1,036 leaves $826.50.

If the premium comes in higher

The premium increase is a flat dollar amount, so every extra dollar in the final figure subtracts directly from your net raise. If Part B rises by $17.90 again, as it did in 2026:

• A retiree receiving a $2,000 check would keep $54.10 of the $72 raise.

• A retiree receiving a $1,000 check would keep $18.10 of the $36 raise, or about half.

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Who isn’t protected

The federal “hold harmless” rule keeps a premium increase from shrinking your net Social Security payment below last year’s. With a 3.6% COLA, that’s unlikely to kick in for most people. Besides, it has gaps: It doesn’t apply to people who pay income-related surcharges, new 2027 enrollees, or those whose Part B isn’t deducted from Social Security.

Higher earners incur a steeper bill. In 2026, a single filer with modified adjusted gross income above $109,000 pays $284.10 a month for Part B, and Part D surcharges could also be deducted from the check. For these retirees, the Part B bill may nullify the raise.

Taxes may take more

Depending on your other income, up to 85% of your Social Security benefits may be taxable. A bigger check could mean a bigger tax bill, even though the raise itself is modest. If you don’t already have federal tax withheld from your benefits, the SSA lets you set that up to prevent an unpleasant surprise in April.

What to do before January

Here are the steps you must take before the start of the new year.

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Watch for the December notice

Notices showing your new net payment go out in December and are also available through a my Social Security account. That net figure is the one to budget around.

Wait for the official Part B number

Don’t commit the raise to new monthly spending until CMS confirms the premium in November.

Use open enrollment

Open enrollment runs October 15 to December 7, so you still have time to compare Medicare plans before 2027 costs take effect.

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Check your income line

A large one-time retirement account withdrawal or capital gain may push a single filer past the $109,000 surcharge threshold.

Bottom line

A 3.6% COLA is a real raise: $72 more a month on a $2,000 check or $108 more on $3,000. Still, with the projected Part B increase, you keep closer to $65 at $2,000. If the premium climbs more, you get even less.

The final number depends on CMS’s November announcement. Your income, surcharges, and taxes also determine whether you get to keep more cash in your pocket in 2027.

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