Some 70 million Social Security and Supplemental Security Income recipients will soon know how much their benefits will increase next year.
The Social Security Administration will announce the 2027 cost of living adjustment on Oct. 14. The announcement will come after the Bureau of Labor Statistics releases September’s Consumer Price Index (CPI), the last piece of data needed to determine the average yearly change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The yearly COLA increase is determined by comparing the average CPI-W for July, August and September of the current year to the same period the prior year.
READ MORE: Latest warning: Social Security cuts will be larger than predicted, feds say
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The latest forecast from the advocacy group The Senior Citizen League puts 2027’s COLA at 3.5%, the highest level in four years, a figure that could change based on September’s inflation numbers. If it holds, the 3.5% COLA would be down 0.1 percentage points from last month’s TSCL prediction but well above the 2.8% COLA for 2026 and the 2.5% adjustment in 2025.
A 3.5% increase would raise the average monthly benefit by $67.90, from $1,940.08 to $2,007.98.
Medicare will cut into COLA increase
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Part of the Social Security increase could be eaten up with higher Medicare costs. The latest Medicare Trustees Report projects the standard Part B premium at $209.50 for 2027, a $6.60 monthly increase from the current $202.90. Part B premiums are deducted directly from Social Security checks, reducing the amount of monthly benefits.
The annual Part B deductible is projected to increase from $283 to about $292.
Costs related to Medicare Part D prescription drug coverage are also expected to increase. Standard deductions are projected to rise to $700, up from $615, with out-of-pocket limits increasing from $2,100 to $2,400.
Leada Gore is a Senior Managing Producer for the Advance Local trending team, covering finance, government and consumer issues. She worked as a Managing Producer for AL.com, starting at the site in 2013 as the... more
