In 60 seconds: The Social Security Administration has set the 2027 COLA at 3.6% — the largest since 2023, worth about $75 a month to the average retiree. But most retirees have their Medicare Part B premium deducted straight from their check, and the Medicare trustees project that premium rises $6.60 to $209.50. On a $2,000 check, the real net raise works out to about $65.40 a month — if the projection holds. The final premium figure is still to come.
- The 2027 Social Security COLA is officially 3.6% — the largest since 2023; the average retirement benefit rises about $75, from $2,095 to $2,170 a month.
- The standard Part B premium is projected to rise $6.60, from $202.90 to $209.50 — a projection, not the final figure, which is expected in late October or early November.
- At the projected premium, the estimated net raise is $47.40 a month on a $1,500 check, $65.40 on $2,000, and $83.40 on $2,500.
- The hold-harmless rule protects most current beneficiaries from a net cut — but not new enrollees or people who pay higher income-related premiums.
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, the biggest since 2023. For the average retiree, that's about $75 more per month. Before you spend it, though, look at your Medicare bill.
What happened
On Oct. 14, the SSA announced the 3.6% COLA for 2027, reflecting September inflation figures. Nearly 72 million beneficiaries will see it, with increased payments starting in January (SSI recipients see theirs on Dec. 31). The average retirement benefit climbs from $2,095 to $2,170 a month.
Here's the catch, and it's the same one almost every year: most people on traditional Medicare have their Part B premium taken straight out of their Social Security check. So when the premium goes up, it eats part of the raise before the money ever reaches your bank account.
Latest verified facts
The standard Part B premium is $202.90 a month in 2026. The Medicare trustees project it will rise $6.60 — about 3.25% — to $209.50 in 2027. That final number is not official yet; CMS is expected to announce it in late October or early November. What follows uses the projection, so treat it as a close estimate, not a promise.
What that looks like on real checks (estimates using the projected premium increase, assuming your Part B premium is deducted from your check):
| Monthly benefit | 3.6% COLA | Part B increase | Net raise |
|---|---|---|---|
| $1,500 | $54.00 | $6.60 | $47.40 |
| $2,000 | $72.00 | $6.60 | $65.40 |
| $2,500 | $90.00 | $6.60 | $83.40 |
Two more official numbers from the same SSA announcement: the maximum earnings subject to Social Security payroll tax rises to $192,300 in 2027, from $184,500 — and the earnings limit for beneficiaries under full retirement age rises to $25,560.
Why it matters
Here's the silver lining: if the projection holds, 2027 could be the first year since 2023 that the COLA percentage actually beats the Part B percentage increase — 3.6% against about 3.25%. In the years in between, premium jumps swallowed a much bigger share of the raise.
There's also a safety net. The hold-harmless rule generally keeps the Part B increase from pushing your net payment below last year's, for as long as the premium is deducted from your Social Security check. But it doesn't protect everyone: new Medicare enrollees, people who pay higher income-related premiums, and anyone not having the premium deducted from Social Security are outside it.
Impact on the USA and the world
For the US, this is kitchen-table math at national scale: roughly 72 million people will open their December COLA notices and do exactly this subtraction. A year where the raise finally outruns the premium — even by a little — is a genuine, if modest, improvement in retiree buying power.
And Part B isn't the only bite. Part D drug-plan premiums are rising for many people in 2027 too — stand-alone plans with $0 premiums are disappearing entirely for enrollees without Extra Help — which can shrink take-home further if you pay through your check.
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What happens next
Wait for the final Part B number before you rebuild your budget around the raise. Once CMS announces it — expected in late October or early November — the net figures above can be pinned down to the cent. The SSA then mails personalized COLA notices in December showing your exact new benefit and what's withheld for Medicare.
The longer view is less comfortable. The trustees' June report projects the retirement trust fund will run out in the fourth quarter of 2032 — a year earlier than previously projected — after which incoming payroll taxes would cover about 78% of scheduled benefits if Congress doesn't act. That debate isn't settling in 2027, but it hangs over every COLA announcement from here on.
Frequently asked questions
How much is the Social Security COLA for 2027?
3.6%, announced by the SSA on Oct. 14, 2026 — the largest cost-of-living adjustment since 2023. The average retirement benefit rises about $75 a month, from $2,095 to $2,170.
Why is my actual raise smaller than 3.6%?
Because the Medicare Part B premium is usually deducted from your check before you're paid. The trustees project the standard premium rises $6.60 to $209.50 in 2027, which comes straight off your gross COLA increase.
When will the final 2027 Part B premium be announced?
The official figure is expected from CMS in late October or early November 2026. Until then, $209.50 is the Medicare trustees' projection, not the final premium.
What is the hold-harmless rule?
It generally prevents the Part B premium increase from reducing your net Social Security payment below the prior year's amount, when the premium is deducted from your check. It doesn't cover new enrollees, people paying income-related premium surcharges, or those who pay Part B some other way.