Social Security COLA 2027: Benefits checks will get largest cost-of-living adjustment in years. Experts say it’s not enough

fastcompany.com

Tens of millions of Social Security recipients will be seeing a bump in their monthly checks come January. On Wednesday, the Social Security Administration (SSA) announced that its annual cost-of-living adjustment (COLA) for 2027 will be 3.6%. (Those numbers follow this morning’s release of the consumer price index from the Bureau of Labor Statistics (BLS), based on September inflation data .) Some 71 million Americans— 54 million retired workers and 9 million of their survivors and dependents —who receive monthly Social Security benefits will see an extra $75 on average per monthly check, or $902 per year, for typical retired workers, according to Robert Laura, a financial planner and founder of the Retirement Coaches Association. While that sounds like good news, some critics, such as Laura, say the adjustment won’t go far once you factor in increasing Medicare premiums—and the high cost of living. “Medicare Part B premiums come directly out of Social Security payments, and those costs are expected to increase by $6.60 a month for 2027,” Laura tells F ast Company . “That will make the average Social Security increase closer to just $68 a month. This trivial amount is easily consumed by higher fuel and grocery prices, not to mention medical costs that are expected to increase by an average of 5.4% for the next decade.” A recent report from the Social Security trustees estimates the retirement trust fund will run out of money  and become insolvent as early as the fourth quarter of 2032, in about six years. While 3.6% is the largest COLA increase since 2023, it may still not be enough. “By design, COLA looks in the rearview mirror: this year’s benefit increases are based on last year’s inflation rates,” Stephanie Akpa, head of policy and public affairs at Atticus—a platform that assists individuals navigating Social Security disability benefits—told Fast Company in a statement. “That means people shoulder a full year of rising costs before payments catch up.” Akpa says that’s especially hard on many Social Security recipients with disabilities, who may be forced to face difficult decisions about how to pay for doctor visits, medications, or a wheelchair, hospital bed, or other medical equipment.