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Social Security benefits are set to rise 3.6% in 2027, giving the average retired worker about $75 more each month. However, a projected Medicare premium increase could reduce that gain before it reaches retirees’ pockets.
The Social Security Administration announced the cost-of-living adjustment on Oct. 14. The increase will raise the average retired worker’s monthly benefit to about $2,170 starting in January. Nearly 72 million beneficiaries are expected to receive higher payments. Supplemental Security Income recipients will see their increased payment arrive Dec. 31.
Although it is the largest increase in four years, the final amount retirees keep depends partly on healthcare costs.
How much will Social Security benefits increase in 2027?
The 3.6% cost-of-living adjustment, or COLA, equals about $900 more over the year for the average retired worker. Disabled workers and survivors are expected to receive roughly $59 more each month.
The maximum benefit for someone retiring at full retirement age will increase from $4,152 to $4,188. The average married couple will receive about $147 more per month.
The adjustment is the largest since the 8.7% increase announced in 2022. Rising prices helped push the latest adjustment higher.
How could Medicare reduce the increase?
Most retirees have their Medicare Part B premium deducted directly from their Social Security payments. The latest Medicare Trustees Report projects that the monthly premium will rise from $202.90 to $209.50 in 2027.
That would add $6.60 to monthly costs. If the projection holds, the average retiree’s $75 increase would become a net gain of about $68.40 each month.
That is still an improvement over 2026. Last year, the average benefit increased by $56 monthly, while the Part B premium rose by $17.90. Retirees were left with roughly $38 more per month.
The official 2027 Part B premium is expected in November.
Who could feel the COLA increase most?
Retirees with smaller benefits may have less room in their budgets. Federal data cited by NewsNation showed that more than 5.7 million retired workers received less than $1,000 monthly in June 2026.
For someone receiving $1,000 a month, a 3.6% increase adds just $36. The projected Part B premium increase would consume part of that gain.
Other Medicare costs could also rise. The Part D deductible is projected to increase from $615 to $700, while the annual out-of-pocket cap could climb from $2,100 to $2,400. The Part B deductible is also expected to rise.
These costs can put added pressure on low-income retirees, including many Black seniors who depend heavily on Social Security income. However, a federal hold harmless rule protects most beneficiaries from having their net Social Security payments fall because of a Part B premium increase.
What should recipients do before 2027?
Recipients do not need to apply for the COLA. The adjustment happens automatically. To view their new benefit amount early, they can create a my Social Security account and sign up for paperless notices by Nov. 18. Online notices are expected in late November, while paper notices should arrive in December.
Medicare open enrollment runs through Dec. 7. Retirees can use that period to compare Part D plans and review expected prescription costs. People with limited incomes can also check whether Medicare Savings Programs may help cover Part B premiums.
For now, the key figure remains unconfirmed. The official 2027 Part B premium is due in November, so the projected $68 monthly gain could still change.
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