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Social Security 2027 COLA may be 3.7% but still not offset Medicare
USA Today • • business
Key Points:
- Social Security checks are projected to increase by 3.7% in 2027, based on June's consumer inflation data, which shows a cooling inflation rate primarily due to lower gasoline prices.
- The 3.7% cost-of-living adjustment (COLA) would raise the average Social Security benefit by approximately $74 per month, marking the largest increase since 2022.
- Despite the inflation drop, analysts caution that the COLA increase may be offset by rising Medicare and drug costs, including an expected 3.3% increase in Medicare Part B premiums and a significant rise in Part D deductibles.
- The final COLA figure is determined by average consumer price index changes from July through September and will be officially announced in October.
- The recent inflation decline is notable but unusual, and experts remain uncertain if this trend will continue amid geopolitical tensions affecting oil prices.
