The Raise Is a Receipt

What's changing

Social Security checks rise 3.6% in January, up from 2.8% this year. The 3.6% COLA for 2027 isn't new money. It's a repayment for price increases you've already absorbed. Treat it as room to spend more, and you'll fall behind without noticing.

• Average retired worker: about $2,095 to $2,170 a month, a $75 increase.
• Average couple, both collecting: about $3,238 to $3,355 a month, a $117 increase.

Your personal notice will appear in your my Social Security account in late November, or arrive by mail in December.

Ten years of catch-up

The ten annual adjustments shown here average about 3.4% over the past decade, though that average masks substantial variation. The 25% increase over the past five years is the largest since 1982-1986, driven largely by the big raises in 2022 and 2023. Prices went up first, and retirees paid those higher bills for most of a year before their checks caught up. The adjustment is backward-looking. It reflects inflation already measured, not the price increases retirees may face next year.

What comes out first

Medicare Part B is deducted before your deposit lands. The 2027 premium and income brackets usually come out in November. Until then, here are the 2026 figures:

• Standard Part B: $202.90 a month
• IRMAA surcharges begin above $109,000 in income for singles or $218,000 for joint filers
• First surcharge tier: Part B rises to $284.10, and $14.50 is added to your drug coverage

Your 2027 surcharge will be based on your 2025 tax return.

If the standard premium lands near the trustees' projection of about $209.50, the average retiree keeps roughly $68 of the $75 raise.

Bottom line

The COLA is meant to help preserve your purchasing power, not automatically improve your standard of living. Build next year's budget around the deposit you'll actually receive after Medicare deductions, then compare it with your current expenses. If your costs have risen faster than your net benefit, the adjustment may not close the gap.