Social Security cost-of-living adjustment for 2027 may be above average. Some say it's not enough
The Social Security Administration is expected to announce the cost-of-living adjustment for 2027. Projections point to a higher-than-average increase.
Key points
- Social Security's 2027 COLA is expected to be 3.5% to 3.6%, the largest in three years.
- An AARP survey found 76% of adults 50 and older say a 3.5% COLA would not be enough.
- Rising Medicare costs in 2027 may offset much of the benefit increase.
Social Security beneficiaries may receive a larger-than-average cost-of-living adjustment in 2027, with experts estimating an increase of 3.5% to 3.6%. The Social Security Administration is expected to announce the official COLA on Wednesday, based on new government inflation data.
If the COLA is 3.5%, the average monthly benefit would rise by $67.90, from $1,940 to about $2,008, according to the Senior Citizens League. The last larger increase was in 2023, when benefits rose 8.7%.
Survey finds increase insufficient
An AARP survey published Monday found that 76% of adults 50 and older do not think a projected 3.5% COLA for 2027 would be enough. The poll of 1,023 adults was conducted Sept. 17–21 and has a 4.25% margin of error.
Donna Dalrymple, a 70-year-old retiree in Manchester, New Hampshire, said she worries rising Medicare costs may outpace the annual benefit increase. She retired at 65 after a cancer diagnosis and began claiming Social Security and 401(k) withdrawals five years earlier than planned.
I would love it if the cost-of-living increase was more generous.
— Donna Dalrymple
Medicare costs may offset gains
Standard monthly Medicare Part B premiums are projected to be $209.50 in 2027, up from $202.90 in 2026. Part D premiums may also see modest increases, according to KFF.
The Trump administration recently announced one-time $90 payments to more than 20 million Part B enrollees. Dalrymple said she does not think she qualifies and worries about affordability if Medicare costs consume her COLA.
