Social Security checks grow by 3.6% starting in January, the biggest bump in four years. The average retiree gets about $75 more per month. Before you plan how to spend it, check what Medicare takes back. Most enrollees pay their Part B premium straight out of the monthly benefit, so the deposit that reaches your bank is smaller than the headline raise.
What the 3.6% COLA Adds to Your Check in 2027
The Social Security Administration announced the 3.6% cost-of-living adjustment (COLA) in mid-October. It lifts the average retired worker benefit from about $2,095 to $2,170 a month. Everyone gets the same percentage, so your own dollar gain depends on your check. Multiply your current benefit by 0.036 for a quick estimate.
Other groups see gains too. Couples who both collect average about $117 more, aged widows and widowers living alone about $69 more, and disabled workers about $59 more. SSI payments rise from $994 to $1,029 for an individual and from $1,491 to $1,544 for a couple.
How Much of Your COLA Is Left After Medicare Part B
Part B covers doctor visits and outpatient care. The standard premium is $202.90 this year. The Medicare Trustees project $209.50 for next year, a $6.60 increase. The Centers for Medicare & Medicaid Services (CMS) usually confirms the final number in mid-November, so treat $209.50 as an estimate until then.
Apply that to the average retiree and the math looks like this:
- Gross raise: $75.00
- Projected Part B increase: $6.60
- Net gain: about $68.40 per month, or roughly $820 over twelve months
Medicare takes under 10% of the average raise. Recent years looked worse. Part B jumped $9.80 in 2024, $10.30 in 2025, and $17.90 this year. The $17.90 jump consumed close to a third of a typical COLA. A bigger raise paired with a smaller premium hike leaves retirees with more of their money than in any recent year.
Some private analysts think the Trustees low-ball premiums and expect the real figure closer to $215 or higher. Even then, the average retiree would keep most of the raise.
Your Net Raise by Benefit Size
This table subtracts the projected $6.60 Part B increase from the 3.6% raise. Your result will shift if CMS announces a different premium or if you pay IRMAA, Part D premiums, or tax withholding.
| Current monthly benefit | Gross raise | Projected Part B increase | Net gain |
|---|---|---|---|
| $1,200 | $43.20 | $6.60 | $36.60 |
| $1,800 | $64.80 | $6.60 | $58.20 |
| $2,095 (average retiree) | $75.00 | $6.60 | $68.40 |
| $2,500 | $90.00 | $6.60 | $83.40 |
| $3,200 | $115.20 | $6.60 | $108.60 |
Does the Hold Harmless Rule Protect Your 2027 Raise?
Federal law blocks Part B from shrinking your net Social Security check. Under the hold harmless rule, your premium increase cannot exceed the dollar increase in your benefit. If your COLA adds $10 and the premium would climb $15, you pay only $10 more.
The rule helps about 70% of Part B enrollees, and it has limits. It does not cover:
- People who pay higher premiums because of income (IRMAA)
- People who enroll in Part B for the first time next year
- People whose state Medicaid program pays their premium
The rule also does not promise you keep your whole raise. If your COLA easily covers the premium bump, you simply pay the bump. With a 3.6% COLA and a projected $6.60 increase, very few retirees should need the protection next year.
Who Pays More: IRMAA Brackets and Your COLA
If your income runs high, you pay an income-related monthly adjustment amount (IRMAA) on top of the standard Part B and Part D premiums. This year the surcharge starts above $109,000 of modified adjusted gross income for single filers and $218,000 for joint filers. The surcharge can add hundreds of dollars a month.
Medicare looks at your tax return from two years earlier. Your 2025 return sets your IRMAA bracket for 2027. A large IRA withdrawal, Roth conversion, or stock sale can push you into a higher bracket two years later, so plan big taxable moves with that lag in mind. If a life event cut your income since then, such as retirement, divorce, or the loss of a spouse, you can ask Social Security to lower your IRMAA.
Part D Changes in 2027 That Can Eat Into Your Raise
Drug coverage can erode your raise as well. The standard Part D deductible rises from $615 to $700. The yearly out-of-pocket cap on covered drugs rises from $2,100 to $2,400. The national base premium moves from $38.99 to $41.33 a month. Individual plan premiums vary, and a plan that worked this year may cost more next year. Open enrollment runs through December 7, so compare your plan against your prescriptions before the deadline. You can browse options on Medicare.gov.
Will a Higher Benefit Affect Medicaid, Extra Help or Savings Program Eligibility?
It can. Social Security counts as income for programs that help with Medicare costs, so a bigger check moves you closer to the income limit. This matters if you get help through a Medicare Savings Program, Extra Help with prescription costs, or Medicaid. Most people stay eligible, but anyone near the cutoff should check before January. Contact your state Medicaid office or your State Health Insurance Assistance Program (SHIP) counselor with your new benefit amount. If you lose help, your Part B premium and drug costs can jump at the same time your raise arrives.
Could the COLA Push More of Your Benefit Into Federal Tax?
The income thresholds that trigger federal tax on Social Security have never been indexed to inflation. Up to 85% of your benefit can face federal tax depending on your combined income. The thresholds start at $25,000 for single filers and $32,000 for married couples filing jointly. A larger check nudges more retirees over those lines each year. If you sit close to a threshold, review your tax withholding for next year.
How the CPI-W Sets the 2027 COLA
Congress does not vote on the COLA. The Social Security Administration compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) across July, August, and September with the same three months a year earlier. That percentage change becomes the next COLA. The 3.6% beats the 2.8% raise that took effect last January and the 2.5% before it. Full history sits on the official SSA COLA page.
When the 2027 COLA Hits Your Account (Dates by Birthday)
- SSI recipients, and people who receive both SSI and Social Security: December 31, because January 1 is a federal holiday. This is your regular January payment arriving early, not an extra one.
- Birthdays on the 1st to 10th: Wednesday, January 13
- Birthdays on the 11th to 20th: Wednesday, January 20
- Birthdays on the 21st to 31st: Wednesday, January 27
People who started benefits before May 1997 also get paid on the 3rd of the month.
Common Mistakes Retirees Make With the COLA
- Budgeting the full 3.6%. Plan around your net deposit after Part B, Part D premiums, and tax withholding.
- Ignoring IRMAA until the letter arrives. Review your 2025 income now. If a one-time spike or a life event hit that year, you can ask for a reduction.
- Letting your drug plan auto-renew. Premiums, deductibles, and drug lists change every year. Compare plans before December 7.
- Forgetting the raise counts as income. A higher benefit can affect Medicare Savings Program, Extra Help, and Medicaid eligibility, and it can tip more of your benefit into federal tax.
5 Steps to Take Before the Part B Premium Is Announced
- Set up your account. Create or sign in to my Social Security. Opt in to paperless notices by November 18 and you can view your COLA notice online up to three weeks before the mailed letter lands in December.
- Watch for the official Part B number. CMS announces it in mid-November along with the new IRMAA brackets. Compare the final premium to your COLA dollar amount.
- Review your drug plan before December 7. Check premiums, deductibles, and your pharmacy network.
- Check your income for assistance programs. Confirm you still qualify once your higher benefit starts.
- Update your budget. Plan around your net deposit, not the gross COLA figure, and adjust again once the final premium is public.
The 3.6% raise puts more money in most retirees' pockets than recent adjustments did. The average retiree should net close to $68 more each month if the projected Part B premium holds. Wait for CMS to confirm the final premium in mid-November, then compare it with your COLA notice and adjust your budget.
Frequently Asked Questions
What is the Social Security COLA for 2027?
It is 3.6%. The increase applies to Social Security and SSI benefits and begins with January payments.
How much will the average retiree get?
About $75 more per month, taking the average retired worker benefit from $2,095 to $2,170.
Will Medicare Part B wipe out my raise?
For nearly everyone, no. The projected premium increase of $6.60 is far smaller than the average raise, and the hold harmless rule protects most enrollees from a smaller net check.
When will the official 2027 Part B premium come out?
CMS typically announces it in mid-November.
Does the hold harmless rule cover everyone?
No. New enrollees, high earners who pay IRMAA, and people whose state pays their premium fall outside it.
Do I need to apply for the COLA?
No. Social Security adds it automatically. Check your notice online in late November or in the mail in December.
What is the maximum benefit at full retirement age?
$4,188 per month, up from $4,152.
