Social Security beneficiaries are about to learn how much their payments will grow in 2027.
The Social Security Administration will release the 2027 cost-of-living adjustment, or COLA, on Oct. 14 at 8:30 a.m. ET. The announcement will follow the Bureau of Labor Statistics’ release of September’s Consumer Price Index, the final inflation report needed for the calculation.
The COLA is based on how the average Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, for July, August, and September of this year compares with the same three-month period last year. When inflation is higher, the COLA is generally larger, since costs for gasoline, medical care, food, and other essentials are rising.
That pattern appears likely for 2027.
The Senior Citizen League, an advocacy group, currently forecasts a 3.5% COLA for 2027 — the largest in four years — though the final figure could shift depending on September’s inflation data. If the 3.5% estimate holds, it would be the biggest increase since 2023 and would exceed the 2.8% adjustment for 2026 and the 2.5% increase in 2025.
A 3.5% increase would add $67.90 to the average monthly benefit, raising it from $1,940.08 to $2,007.98.
The change would affect roughly 70 million people who receive traditional Social Security benefits, along with disability and survivor beneficiaries.
Medicare will reduce the impact of the COLA increase
Even if the Social Security COLA ends up being the largest since 2023, rising Medicare costs will take away part of the gain.
The latest Medicare Trustees Report projects that the standard Part B premium will be $209.50 in 2027, an increase of $6.60 per month from the current $202.90. Part B premiums are taken directly out of Social Security checks, which lowers the amount beneficiaries actually receive each month.
The annual Part B deductible is projected to rise from $283 to about $292.
Medicare Part D prescription drug coverage costs are also expected to climb. Standard deductions are projected to increase to $700 from $615, while out-of-pocket limits would rise from $2,100 to $2,400.