A $75 Social Security Raise Sounds Good — Until You Look at What Inflation Is Doing

Social Security’s 3.6% COLA will add about $75 to the average retiree’s monthly benefit in 2027. But energy, hospital services and car repairs are among expenses currently rising faster than that adjustment. AlexandrMusuc/Shutterstock

An extra $75 in a monthly Social Security check sounds like welcome news, especially for retirees watching every dollar. That is roughly the average increase retirees can expect after the Social Security Administration announced a 3.6% Social Security COLA for 2027, raising the average retirement benefit from about $2,095 to $2,170 per month. But the inflation report that produced that increase also contained an uncomfortable message: prices are still climbing, and some expenses retirees regularly pay are rising much faster than 3.6%.

The Bureau of Labor Statistics reported that overall consumer prices were 3.7% higher in September 2026 than a year earlier. So before mentally spending that extra $75, retirees should look at what is happening to the expenses already competing for it.