Social Security's 2027 COLA Rises 3.6%, but Medicare Costs Could Eat Into Retirees' Extra $75 a Month

Social Security’s 3.6 per cent COLA will add about $75 a month for the average retired worker in 2027, but higher Medicare costs could reduce the gain (Credit: j4p4n/Wikimedia Commons)

Social Security recipients in the United States will receive a 3.6 per cent cost-of-living adjustment, or Social Security COLA, in 2027, the largest rise in four years. The increase, announced by the Social Security Administration on 14 October, adds $75 (€65 and £56) a month for the average retired worker, or $900 (€781 and £671) a year.

For disability and survivor beneficiaries, the increase is $59 (€51 and £44) a month, or $708 (€615 and £528) a year. Payments will begin in January 2027 for nearly 72 million Social Security beneficiaries.