Your Social Security Raise Isn’t the Number That Matters Most — Watch What Happens to Medicare

A Social Security COLA increases the gross benefit, but higher Medicare premiums can consume part of that raise. For retirees, the change in the net monthly payment may be the number that matters most. J.J. Gouin/Shutterstock

Millions of retirees are waiting to learn how much their Social Security checks will increase in 2027, but the headline COLA percentage won’t tell them how much extra money they’ll actually have to spend. For beneficiaries enrolled in Medicare Part B, premiums are commonly deducted directly from Social Security payments, which means a higher Medicare bill can consume part of the increase before the money ever reaches a bank account. The 2027 Social Security and Medicare costs are especially important to consider together because both numbers affect the household budget retirees actually live on.

The Social Security Administration will announce the 2027 COLA in October, while Medicare’s final 2027 premium amounts will also determine what many beneficiaries ultimately see deposited. Instead of asking only, “How big is my Social Security raise?” retirees should be asking, “How much of that raise will I actually keep?”