Social Security COLA 2027: Benefits Rise 3.6% — What It Means for Your Retirement Plan

The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027 — the largest Social Security benefits increase since 2023. The raise takes effect with January 2027 benefit checks and works out to roughly $75 more per month for the average beneficiary. The SSA will notify recipients of their new benefit amounts by mail and online starting in early December.

Before you celebrate, a caveat worth noting: the Medicare Part B premium is projected to rise $6.60 per month to $209.50 in 2027, which absorbs part of the increase — leaving most beneficiaries with a net gain closer to 3%. Prescription drug plan premiums and Medicare Advantage costs are also climbing, which makes this year's Medicare open enrollment (October 15 – December 7) an especially good time to review your coverage. And if you're still working, note that the maximum earnings subject to Social Security payroll tax rises to $192,300 next year.

A 3.6% bump is welcome news, but for many retirees it still may not keep pace with real costs — particularly healthcare, which hits retiree budgets harder than the inflation index reflects. If you're wondering how this COLA fits into your broader retirement planning, that's exactly the conversation to have with your advisor. Contact us to review your plan. 

Whether you're looking to meet with one of our CFP® professionals in person at our offices in Cornelius, NC, or Pittsburgh, PA, or a virtual meeting, we would love to hear from you.