Social Security recipients will soon learn how much their benefits could rise in 2027, though the eventual increase in their bank accounts might be smaller than the headline figure due to Medicare costs.
The annual cost-of-living adjustment, or COLA, is based on inflation data from July through September.
WASHINGTON, DC – OCTOBER 14: In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. The Social Security Administration announced recipients will receive an annual cost of living adjustment of 5.9%, the largest increase since 1982. The larger increase is aimed at helping to offset rising inflation. (Photo illustration by Kevin Dietsch/Getty Images)
The Social Security Administration is expected to announce the 2027 adjustment on October 14, which is after the Labor Department releases September’s Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.
An estimate cited by financial news website 24/7 Wall St. puts the 2027 COLA at 3.3%. If that estimate holds, a recipient receiving $2,000 a month would see a gross increase of about $66, raising the monthly benefit to roughly $2,066.
The final figure could change once September’s inflation report is released.
The adjustment is meant to help beneficiaries keep pace with inflation, not provide an additional raise. It compares the average CPI-W reading for the third quarter of 2026 with the same three-month period a year earlier.
For many retirees, the net increase could be smaller because Medicare Part B premiums are commonly deducted directly from Social Security payments. The standard Part B premium rose by $17.90 in 2026, to $202.90 a month.
The 2027 Part B premium has not yet been announced. Higher-income beneficiaries may also face income-related surcharges for Medicare Part B and prescription drug coverage, which can further reduce their deposits.
The COLA would take effect with January 2027 Social Security payments.