Social Security COLA for 2027 could rise 3.5%

Key Points:

• Social Security beneficiaries may receive a 3.5% to 3.6% cost-of-living adjustment (COLA) in 2027, the largest increase in three years, expected to be announced following new inflation data.
• Despite the increase, 76% of adults aged 50 and older believe the adjustment will not be sufficient to cover rising living costs, with many concerned that Medicare premium hikes could offset the benefit boost.
• The average Social Security benefit could rise by about $67.90 per month, reaching approximately $2,008, but experts note the final COLA may vary depending on inflation data released in the coming weeks.
• Medicare Part B premiums are projected to increase to $209.50 in 2027, potentially reducing the net gain from the COLA for many beneficiaries, while a one-time $90 payment is being distributed to some enrollees to help with premium costs.
• Some critics question the timing and motives behind the $90 Medicare payments ahead of elections, and some beneficiaries express a preference for strengthening Medicare’s long-term funding rather than receiving direct payments.