Naples – October 16, 2026 -- Social Security and SSI payments for 76 million Americans will rise 3.6 percent in 2027, lifting the average retirement benefit by about $75 a month. Finance and insurance professional Bobby Garon says many retirees will see a smaller bump in their bank accounts than that headline suggests.
The 2027 COLA is the largest since 2023
The Social Security Administration announced the cost of living adjustment (COLA) on October 14. It is up from 2.8 percent in 2026 and is the largest since 2023's 8.7 percent increase.
Nearly 72 million Social Security beneficiaries will see the increase starting in January 2027. About 7.3 million SSI recipients will get theirs on December 31, 2026.
Medicare Part B premiums can take a bite out of the raise
For most beneficiaries, the Medicare Part B premium is deducted directly from the Social Security payment. Current projections put the 2027 premium at roughly $209.50 a month, up from $202.90 in 2026. Medicare is expected to confirm the official figure in November.
Garon advises using the confirmed premium when updating a monthly budget. In his words, the increase retirees feel is usually smaller than the percentage they read about.
Workers face a higher taxable earnings cap
The October 14 announcement also raised the maximum earnings subject to Social Security tax to $192,300 in 2027, from $184,500 this year. Garon notes that this change reaches the paychecks of younger professionals and higher earners long before they collect a benefit.
A proposed bill would allow full benefits at 60
Garon's analysis also covers the Blue Collar Social Security Fairness Act, introduced in September by Rep. Haley Stevens of Michigan. The bill would let workers in physically demanding jobs claim full benefits at 60 instead of 67. It remains a proposal, and Garon cautions against building a retirement plan around it until it becomes law.
Create your my Social Security account by November 18
Garon recommends that beneficiaries create or log in to their my Social Security account by November 18 to view their personal COLA notice online in late November. He then suggests updating the 2027 budget once the Part B premium is final. For anyone within a decade of retirement, he suggests reviewing how Social Security fits into a broader income plan.