Social Security's 2027 COLA should be announced next week.
Current projections call for a COLA in the 3.5 to 3.6% range.
You can do some basic math right now, but if you're on Medicare, it may not be so accurate.
At this point in the year, you're probably used to having a certain amount of Social Security to spend each month. After all, you've most likely been getting the same check since January.
But soon enough, the Social Security Administration (SSA) is expected to announce an official cost-of-living adjustment, or COLA, for 2027. That raise should take effect in January and increase your benefits.
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What sort of increase might you be looking at? Here's a hint at what you can expect based on current estimates.
Social Security COLAs are based on inflation data from July, August, and September. Even though September is behind us, that month's data has not yet been released.
But based on data from July and August, experts are calling for a Social Security COLA in the 3.5% to 3.6% range. So you can apply those numbers to your current checks to see how much they might increase.
Let's say you collect $2,000 a month in Social Security. Based on these COLA projections, your benefits might rise by $70 to $72 in the new year.
Of course, do remember that you're only looking at projections. The official COLA could be higher or lower. For example, if the COLA is only 3.2%, in this example, you're only looking at an increase of $64 per month.
But the projections above should give you a basic idea of what to expect ahead of the big announcement.
If you're not enrolled in Medicare, once the SSA announces an official 2027 COLA, you can do simple math to see what raise to expect in the new year. If you're on Medicare, things may get a bit more complicated.
That's because Medicare enrollees on Social Security pay their Part B premiums from their Social Security benefits automatically. If the cost of Part B increases substantially in 2027, it could have an impact on your net raise.
For example, let's say the official COLA comes in at 3.5%, and that based on your $2,000 monthly benefit, you're getting a $70 raise. If the cost of Part B increases by $10, your raise will be knocked down to $60. Last year, the cost of Part B rose by $17.90 per month, so a similar increase isn't out of the question.
Official Medicare costs may not be released for weeks after the COLA announcement. Keep that in mind before you start formulating a 2027 budget based on incomplete information.
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