Social Security's 2027 COLA Is 3.6% — Here's What You'll Actually Keep

A retired couple reviewing blank paperwork with a calculator and coffee at a sunny kitchen table

The short answer: about $75 a month on the average retired worker's check — and about $68 of it once Medicare takes its bite. The Social Security Administration announced Wednesday, October 14, 2026, that benefits will rise 3.6% in 2027, the largest cost-of-living adjustment since the 8.7% increase in 2023. It affects 76 million Americans. But the number in the headline isn't the number that lands in your bank account, and the gap between the two is the whole story.

How the 3.6% was set

By law, the annual COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), averaged across July, August, and September versus the same three months a year earlier. This year the three readings were 3.4% in July, 3.5% in August, and 3.9% in September — an average of about 3.6%. (The Senior Citizens League, Oct. 14, 2026.) The broader CPI that dominates headlines rose 3.7% in September, per the Bureau of Labor Statistics. For context: the 2026 COLA was 2.8%, 2025's was 2.5%, 2024's was 3.2%, and 2023's was 8.7%.

Run your own COLA numbers

Enter your current monthly benefit before any Medicare deduction — the gross amount on your Social Security notice.

2027 COLA calculator

Illustrative math using the official 3.6% COLA and the projected Part B premium. Your exact amounts arrive in your December SSA notice.

Your current monthly benefit, before Medicare deduction ($)
Medicare Part B comes out of my check

Assumptions: 3.6% COLA on your full current benefit. Part B: $202.90/month in 2026, projected $209.50 in 2027 (2026 Medicare Trustees Report) — up $6.60. The 2027 premium is a projection, not final: CMS announces the official premium in November.

What the averages look like

Averages hide a wide spread — your number depends on your earnings history. All figures from SSA's 2027 COLA fact sheet, October 14, 2026:

Benefit type	Now (monthly)	Jan 2027 (monthly)	Monthly raise
All retired workers	$2,095	$2,170	+$75
Aged couple, both receiving benefits	$3,238	$3,355	+$117
Aged widow(er) alone	$1,936	$2,005	+$69
All disabled workers	$1,642	$1,701	+$59
SSI, individual	$994	$1,029	+$35
SSI, couple	$1,491	$1,544	+$53

The quick method for any benefit not in the table: multiply your current monthly benefit by 0.036. A $1,500 benefit gains $54 a month; a $3,000 benefit gains $108.

The Medicare bite

On the average retired worker's check, that turns a $75 gross raise into about a $68.40 net raise. The bite is real, but this year it is unusually small: last year, the Part B premium jumped about 9.7%, taking roughly a third of the average retiree's 2.8% COLA raise before the money ever arrived.

Two caveats. First, the $209.50 is a projection, not the final number: the Centers for Medicare & Medicaid Services announces the official 2027 premium in November, and past projections have sometimes come in low. Second, a "hold harmless" rule keeps the Part B increase from cutting most people's net Social Security check, and with a 3.6% COLA very few beneficiaries are expected to need that protection this year.

When the money lands

A blue mailbox on a sunny porch holding a plain blank envelope — the COLA notice arrives in December — Your exact 2027 amount arrives in your December COLA notice. (Illustration)

You don't need to do anything — the increase is automatic.

January 2027: first raised Social Security payments (benefits are paid a month in arrears).
December 31, 2026: first raised SSI payment (January 1 is a holiday).
Early December 2026: SSA mails individual COLA notices with exact dates and dollar amounts.
Earlier: with a my Social Security account, you can see your notice online up to three weeks sooner — sign up for digital notices by November 18, 2026.

The other 2027 numbers announced the same day

The October announcement also updates figures tied to the national average wage index rather than inflation. These matter mostly to people still working:

Taxable maximum: $192,300 in 2027, up from $184,500 — the most earnings subject to the 6.2% Social Security payroll tax.
Earnings test, under full retirement age all year: $25,560 a year ($2,130 a month), up from $24,480. Earn more while collecting early and $1 is withheld for every $2 over the limit.
Earnings test, the year you reach full retirement age: $67,920 a year ($5,660 a month), up from $65,160 — $1 withheld for every $3 over, and only for earnings before your birth month. Once you reach full retirement age, there is no earnings limit.
Work credit: $1,970 of earnings per quarter of coverage, up from $1,890.
Maximum benefit at full retirement age: $4,188 a month, up from $4,152.

Withheld earnings-test benefits aren't lost forever — they're repaid as a benefit boost once you reach full retirement age — but they can leave you with less cash than expected until then. If you're working and collecting, the new limits are worth knowing before January.

The downside, stated plainly

Three things the headline doesn't tell you. First, the COLA looks backward. It's based on prices from July through September 2026 versus a year earlier. It compensates you for inflation that already happened; it does nothing about price increases between now and next fall. Second, it measures the wrong shopping basket. CPI-W tracks the spending of urban wage earners, not retirees — and retirees spend a bigger share on health care, the category hardest to dodge. Third, averages aren't your check. In the Senior Citizens League's 2026 Senior Survey, 89% of respondents said the last COLA was too low and their benefits would fall behind inflation. A 3.6% raise on a $1,200 benefit is $43 a month; on a $3,000 benefit it's $108.

None of that makes the COLA bad news — it's the biggest in four years, and it beats 2026's 2.8% by a full 0.8 percentage points. But if your budget was tight in 2026, a 3.6% raise doesn't make 2027 comfortable. If you're weighing bigger retirement decisions — when to claim, how much to withdraw from savings, whether to keep working — those depend on your full picture, and a fee-only planner or tax pro can spot trade-offs a calculator can't. Our FIRE numbers walk-through covers the other side of the same question: what it takes for savings alone to carry a retirement.

What to do now

Run your own numbers in the calculator above — the average is not your check.
Budget on the net number if Part B comes out of your deposit. Use the projected $209.50 for now and re-check when CMS announces the official premium in November.
Watch for your December notice (or check my Social Security online) — it's the only number that counts, because it reflects your deductions.
If you're still working and collecting, note the new $25,560 / $67,920 earnings-test limits — and if you have spare cash, our pay off debt or invest first walk-through covers the priority order for it.

Sources

Social Security Administration, "2027 Cost-of-Living Adjustment (COLA) Fact Sheet," Oct. 14, 2026 (3.6% COLA; benefit averages; taxable maximum; earnings-test limits; work credit; maximum benefit; SSI standards).
Social Security Administration, "Just Announced! Cost-of-Living Adjustment (COLA) for 2027," advocates notice, Oct. 14, 2026 (76 million Americans; digital-notice signup by Nov. 18, 2026).
U.S. Bureau of Labor Statistics, Consumer Price Index, September 2026, released Oct. 14, 2026 (headline CPI +3.7% year over year), via Reuters, Oct. 14, 2026.
The Senior Citizens League, "Cost-of-Living Adjustment for 2027 Announced at 3.6%," Oct. 14, 2026 (CPI-W by month: July +3.4%, August +3.5%, September +3.9%; 89% of 2026 Senior Survey respondents said the last COLA was too low).
2026 Medicare Trustees Report, released June 24, 2026 (2027 Part B premium projected at $209.50, vs. confirmed 2026 premium of $202.90; official premium announced by CMS in November).

2027 COLA FAQ

How much will my Social Security check go up in 2027?

Multiply your current monthly benefit by 0.036. The average retired worker gains about $75 a month ($2,095 to $2,170). If Medicare Part B comes out of your check, subtract the projected $6.60 premium increase — the average net raise is about $68.40.

When will I see the 2027 COLA in my check?

First raised Social Security payments arrive in January 2027. SSI recipients see the increase December 31, 2026, because January 1 is a holiday. No action is needed — the increase is automatic.

Will Medicare eat my whole COLA raise?

Not this year, for most people. The projected Part B increase is $6.60 a month ($202.90 to $209.50), against a $75 average raise — about 9% of it. Last year the Part B jump was much bigger, about 9.7%, and took roughly a third of the average raise. The $209.50 is a projection; CMS announces the official premium in November.

Does the 3.6% COLA apply to SSI too?

Yes. SSI payments rise 3.6% as well: the federal payment standard goes from $994 to $1,029 a month for an individual and from $1,491 to $1,544 for a couple. SSI resource limits are unchanged at $2,000 for an individual and $3,000 for a couple.