Social Security recipients to get 3.6% COLA raise in 2027

Key Points:

• More than 70 million Social Security recipients will receive a 3.6% cost-of-living adjustment (COLA) in 2027, the largest increase since 2022, raising the average monthly benefit by about $75 to $2,162.67.
• Despite the COLA, many seniors feel the increase falls short due to rising healthcare costs, especially Medicare premiums, which are not fully accounted for in the inflation index used to calculate COLA.
• Medicare Part B premiums are expected to rise by about 3.25% in 2027, reducing the net benefit increase for many recipients to roughly $64-$68 per month after premiums.
• Experts and advocacy groups argue that COLA calculations do not accurately reflect retirees' spending patterns, particularly on healthcare, leading to calls for a seniors-specific inflation index and larger COLA increases between 5% and 8%.
• Financial advisors emphasize that Social Security alone is insufficient for retirement income and recommend that individuals save, invest, and consider working longer to ensure financial security.