Social Security Checks to See 3.6% Rise for 2027

Seniors will see a 3.6 percent bump in their Social Security checks next year, the largest cost-of-living adjustment (COLA) since 2023 as persistent inflation drives up costs across the spectrum of consumer goods.

A report in The New York Times said the Social Security Administration announced the 3.6 percent COLA on Oct. 14 after the release of government inflation data for September.

The COLA is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The index values for July, August, and September are averaged to produce the official adjustment figure, the newspaper said.

For the average Social Security beneficiary, the COLA will equal a $75 monthly increase, the government said. For retirees in Medicare that will vary, with for instance the Part B premium, which covers outpatient care, is usually deducted from Social Security benefits, changing net COLAs.

Separately, Social Security said the maximum amount of earnings subject to the Social Security payroll tax would rise to $192,300, up from $184,500 this year, the Times said.

The Medicare board of trustees has projected that the monthly Part B premium will rise $6.60 in 2027 to $209.50. The final figure will be released this fall, but if the projection holds, most beneficiaries will receive net COLAs of at least 3 percent.