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Some People Won't Keep Their Entire 3.6% Social Security COLA. Here's How to Know if You're 1 of Them
24/7 Wall St. • • business
Key Points:
- The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, an increase from the 2.8% COLA in 2026, which many seniors found insufficient given inflation rates.
- Inflation, influenced by factors such as rising oil prices due to the Middle East conflict, outpaced the 2.8% COLA in 2026, and it remains uncertain how well the 3.6% COLA will keep up with inflation in 2027.
- Seniors enrolled in Medicare Part B will see their COLA reduced by the amount of any premium increase, as Part B premiums are deducted directly from Social Security benefits.
- The Medicare Part B premium increased by $17.90 in 2026, and while the 2027 increase may be smaller, any rise will reduce the effective COLA for those on Medicare.
- The hold harmless provision protects Social Security recipients from seeing a net decrease in benefits if Medicare premium hikes exceed their COLA, but seniors should wait for the official Medicare premium announcement before finalizing their 2027 budgets.
