Social Security’s 2027 Boost Adds About $75 a Month, But Retirees May Still Fall Short

Retirees who receive Social Security benefits are set to get a boost in 2027, but advocates say the increase still won’t be enough to keep pace with everyday costs. The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, the largest since 2023, as benefits rise to reflect higher inflation.

Even so, advocates argue the adjustment does not go far enough and that Social Security continues to lose purchasing power. Here’s a closer look at what the COLA means and why it may still lag behind the cost pressures facing older Americans.

The 2027 COLA and what it means for benefits

The 3.6% COLA translates to an average monthly increase of about $75 for retired workers, lifting average benefits from $2,095 in 2026 to $2,170 in 2027. Because the adjustment is percentage-based, people with larger checks will see a bigger dollar increase than those with smaller benefits.

Roughly 72 million Social Security recipients are expected to receive the increase starting in January 2027, while 7.3 million Supplemental Security Income (SSI) recipients should see it on December 31, 2026.

“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” said Commissioner Frank J. Bisignano.

The increase has also been described as a “Trump bump,” a label tied to the fact that it stems from third-quarter Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data, which is partly influenced by rising energy prices.

Why a higher COLA may still not be enough

At first glance, a bigger benefit increase sounds helpful, but it does not necessarily mean retirees have gained ground. Because the COLA is based on third-quarter inflation, a higher adjustment is also a sign that prices rose during that period.

The calculation also ignores inflation trends from the rest of the year. Since the COLA is determined once annually and takes effect each January, retirees can still face months of higher prices before the increase arrives. For example, Social Security recipients received a 2.8% COLA for 2026, while gas and diesel prices surged this year because of the war with Iran.

Social Security’s shrinking buying power

The Senior Citizens League, an advocacy group, estimates that over the past decade Social Security benefits have lost 13.7% of their buying power because increases have not kept up with inflation. Under that estimate, a dollar of benefits in 2016 is worth only $0.86 now.

To fully restore the buying power of the average beneficiary, monthly benefits would need to rise by nearly $296, or about $3,550 a year.

Many retirees are already feeling that gap. A September 2026 AARP poll found that about 75% of people age 50 and older did not think a 3.5% COLA in 2027 would be enough to keep up with rising prices.

The issue with the CPI-W

Some advocates also question the use of the CPI-W itself. The National Active and Retired Federal Employees Association (NARFE) supports replacing it with the Consumer Price Index for the Elderly (CPI-E). The CPI-W is based on the spending patterns of younger workers and, according to NARFE, does not reflect seniors’ expenses well, especially health care.

NARFE says older adults spend nearly twice as much on health care as the general population, and those costs have risen faster than many other goods and services. The group argues that the CPI-E would better capture retirees’ real expenses and could produce a larger, more accurate COLA.

Medicare Part B premiums could reduce the gain

Part of the benefit increase may also be offset by Medicare Part B premiums, which are deducted from Social Security checks. The final premium amounts are expected to be released soon. According to the Medicare Trustees, the monthly premium for 2027 is projected to rise to $209.50, up $6.60 a month.

If the COLA already trails the prices retirees are actually paying, higher Medicare Part B premiums could further strain household budgets.

What retirees should do next

Beneficiaries may be able to log in to their my Social Security account in late November to view their COLA notice and check the exact 2027 benefit amount. To see the notice online, paperless billing must be enabled. Those who do not enroll in paperless billing will receive the notice by mail in December.

Once the 2027 benefit amount is known, retirees may want to revisit their budgets and retirement plans and make any needed adjustments.

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