Retirees Are Already Recalculating Their Budgets Ahead of the 2027 COLA

A projected 3.5% Social Security COLA could raise monthly benefits, but Medicare premiums and other rising expenses may determine how much of that increase retirees actually keep – Shutterstock

Retirees are already penciling in possible changes to their 2027 budgets, even though Social Security has not announced the official COLA yet. The Senior Citizens League currently projects a 3.5% increase, which would give the average beneficiary roughly $68 more per month.

That sounds useful until the household budget gets involved. A few extra dollars can disappear surprisingly fast once groceries, utilities, insurance, prescriptions, property taxes, or a long-neglected car repair enter the picture. The 2027 COLA may give retirees more breathing room, but many are treating the potential increase as a planning number rather than spending money that has already arrived.