Here's How Much the Average Social Security Check Could Increase in 2027 With a 3.6% COLA

Source Motley_fool

Key Points

  • The Social Security Administration recently announced a 3.6% COLA for 2027.

  • Based on the average benefit today, the typical Social Security recipient could get about $75 more per month.

  • Medicare enrollees could end up with less if the cost of Part B rises substantially.

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For months, there was tons of speculation as to what the 2027 Social Security cost-of-living adjustment, or COLA, would amount to. Earlier in the year, some experts were calling for a COLA above 4% as inflation soared, driving prices up just about everywhere. Those COLA estimates then settled neatly into the mid-3% range as the official announcement got closer.

On Oct. 14, the Social Security Administration confirmed that the 2027 COLA will be 3.6%. That's a considerably larger raise than the 2.8% COLA that arrived in early 2026. And many seniors may be reasonably happy with a 3.6% boost given how much higher it is than this year's increase.

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A person using a calculator.

Image source: Getty Images.

You may be wondering how much the typical Social Security benefit will rise now that the COLA is official. We can do the calculations, but they'll be incomplete for many retirees for one big reason.

What a 3.6% COLA means for the average benefit today

The average Social Security retirement benefit today is $2,088. If we do the math on a 3.6% COLA, that means the typical recipient should be looking at another $75 per month in 2027, or an extra $900 throughout the year.

Of course, for seniors who are struggling, a $900 annual boost may not move the needle all that much. But for others, that extra money could give them just enough breathing room to better keep up with their costs.

Medicare is the big wild card factor

While the typical Social Security check could increase by $75 in 2027 once the COLA is applied, those who are enrolled in Medicare will see less of a boost. Dual enrollees pay for their Medicare Part B premiums out of their Social Security benefits automatically, so any increase in the cost of Part B will directly eat into the COLA.

In 2026, the cost of Medicare Part B rose $17.90 per month. Hopefully next year's increase won't be quite as substantial.

But Social Security recipients who are also signed up for Medicare shouldn't start counting their 2027 raise just yet. The cost of Medicare will help determine how much more money their Social Security benefits pay them in the new year.

Last year, the Centers for Medicare & Medicaid Services revealed the cost of Part B (among other cost updates) in mid-November. So Social Security recipients may have to wait a few more weeks to figure out their exact 2027 boost and use it to budget for the new year.

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