The 2027 Social Security COLA is 3.6%. Here's what you'll keep

You've probably seen the headline: Social Security is going up 3.6% in 2027. The real question is simpler. How much more will land in your checking account in January, once Medicare takes its share? Here's the 2027 Social Security COLA, short for cost-of-living adjustment, in dollars, with the math on what you're likely to keep.

The short answer: The 2027 Social Security COLA is 3.6%, the Social Security Administration (SSA) announced on Oct. 14, 2026. It starts with January 2027 payments, and SSA says the average retirement check rises about $75 a month, from $2,095 to $2,170. If you're on Medicare, part of that raise goes to Part B, which Medicare's trustees estimate at $209.50 a month for 2027, up from $202.90.

Key takeaways

• The 3.6% raise reaches about 72 million people with their January 2027 payment; SSI recipients get it on Dec. 31, 2026.
• The COLA tracks one price index, the CPI-W, from July through September, compared with the same months a year earlier.
• In KAV's example, an average widow's $69 raise becomes about $62 after the projected Part B increase.
• Income tax, higher-income Medicare charges and the earnings test can shrink what you actually receive.

How much is the 2027 Social Security COLA?

The 2027 Social Security COLA is 3.6%, and it applies to retirement, survivor and disability benefits as well as Supplemental Security Income (SSI). SSA puts the total at 76 million Americans, and on average, "Social Security retirement benefits will increase by $75 per month," according to the SSA announcement.

Here's how SSA's 2027 COLA fact sheet estimates typical monthly checks before and after the raise:

• All retired workers: $2,095 to $2,170
• A retired couple, both collecting: $3,238 to $3,355
• A widow or widower living alone: $1,936 to $2,005
• All disabled workers: $1,642 to $1,701

SSI works a little differently. The maximum federal SSI payment rises from $994 to $1,029 a month for an individual and from $1,491 to $1,544 for a couple, and those higher payments start on Dec. 31, 2026.

It's the biggest raise since 2023's 8.7%. The COLAs for 2024, 2025 and 2026 were 3.2%, 2.5% and 2.8%, according to SSA's COLA history.

How Social Security calculates the COLA

The COLA is the percentage rise in one price index, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from one July-to-September stretch to the next. Congress set that rule in the Social Security Act, so the number comes from a formula, not a decision.

SSA's actuaries put it this way: the COLA equals "the percentage increase (if any) in the CPI-W from the average for the third quarter of the current year to the average for the third quarter of the last year in which a COLA became effective" (SSA Office of the Chief Actuary).

Step by step:

1. The Bureau of Labor Statistics publishes the CPI-W every month.
2. SSA averages July, August and September of 2026 and compares that with the same three months of 2025.
3. The rise, 3.6% this year, takes effect with the benefit for December, which is paid in January.

Each COLA is a percentage of your current benefit, including past raises, so the increases build on each other.

Example: the raise you keep after Medicare

For most people on Medicare, the raise you see is the COLA minus any increase in your Part B premium. That's because most people have Part B "deducted automatically" from their Social Security payment, as Medicare.gov explains.

The standard premium is $202.90 a month in 2026, according to the Centers for Medicare & Medicaid Services. The official 2027 figure comes later in the fall, but the 2026 Medicare Trustees Report says: "The estimated monthly premium for 2027 is $209.50." That's $6.60 more a month.

Take Carol, 74, a widow in Pennsylvania who gets the average benefit for a widow living alone. She's an example, not a client.

• Her check before the COLA: $1,936
• After the 3.6% raise: $2,005, or $69 more a month
• Projected Part B increase: $6.60
• What she'd keep: about $62.40 more a month, or $748.80 over 2027

Now take Ray and Denise, both 70 in Arizona and both collecting. Using SSA's average for couples, their combined checks rise from $3,238 to $3,355, or $117 a month. Two Part B premiums going up $6.60 each take $13.20, which leaves them about $103.80 more a month.

These are KAV's calculations on SSA's averages and the trustees' estimate. Your notice will show your exact figures. If you're newly widowed, our guide to what to do financially after the death of a spouse covers the survivor benefit itself.

What if the premium rose more than your raise? For most people who have it deducted, a hold-harmless provision "limits the dollar increase in the premium to the dollar increase in an individual's Social Security benefit," the trustees explain. At these numbers, that only matters for very small checks.

What else can change your January deposit

Three other things can shrink what lands in your account: higher-income Medicare charges, federal income tax, and the earnings test if you work before full retirement age.

• Higher-income Medicare charges. The $209.50 estimate is the standard premium "paid by, or on behalf of, most Part B enrollees." People with higher incomes also pay an income-related monthly adjustment amount on top of it.
• Income tax on your benefits. According to SSA, you'll owe federal income tax on part of your benefits if your combined income (half your benefits plus your other income) is over $25,000 a year filing individually or $32,000 filing jointly. A bigger check counts toward that total. You can have 7%, 10%, 12% or 22% withheld from each payment.
• The earnings test. If you're working and under full retirement age for all of 2027, SSA holds back $1 for every $2 you earn over $25,560. In the year you reach full retirement age, it's $1 for every $3 over $67,920, and the limit disappears once you're there (SSA).
• Payroll tax if you're still working. The most earnings subject to Social Security tax goes from $184,500 to $192,300. That changes what high earners pay in, not what retirees get.

What to do before your January check

1. Sign in to my Social Security. SSA says the one-page notice shows your new amount and "any deductions." It's online in late November if you create an account and choose paperless notices by Nov. 18; otherwise it comes by mail in December.
2. Check the Medicare line. SSA says your 2027 premium will also appear in your account's Message Center starting in late November.
3. Update your budget with the net figure, not the 3.6% headline. Our guide to making a budget for beginners shows how to rebuild one around a fixed income.
4. Look at your tax withholding if your income is near the $25,000 or $32,000 lines.
5. Not collecting yet? The raise still counts (see the FAQ below). Our guide to when to take Social Security and the retirement calculator can help you plan your start date.

If you'd like help turning this into a plan, KAV Solutions offers a complimentary Financial Needs Analysis. A licensed insurance professional walks through the income you'll need in retirement, the coverage that protects it and your goals, with you. The analysis is free and you never pay KAV a fee. If you choose to buy a policy, the insurer pays the professional a commission. For tax decisions, bring the numbers to a tax professional.

Frequently asked questions

KAV Solutions is a women-led team of licensed insurance professionals based in Pennsylvania. This article is general education, not individualized financial, tax, or legal advice. Figures are as of October 2026, and the 2027 Medicare Part B premium was still an estimate when this was written.