The 2027 3.6% cost-of-living adjustment (COLA), the yearly benefit increase tied to inflation, will leave most retirees with more cash even after Medicare premiums. The average check gains about $75 a month while the projected Part B premium rises only $6.60, leaving about $68.40.
The Social Security Administration announced the increase on Oct. 14, 2026, as described in the agency announcement. It reaches nearly 72 million beneficiaries starting in January 2027.
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Table of Contents
- How large is the 2027 benefit increase?
- What will Medicare Part B cost?
- How much of the COLA will you keep?
- Who is shielded from a larger premium bite?
How large is the 2027 benefit increase?
The Social Security Administration estimates the average retired-worker check rises from $2,095 to $2,170 per month in 2027. That estimate appears in the 2027 COLA fact sheet.
That is about $75 a month or $900 a year before deductions. The agency based the rate on the Consumer Price Index for Urban Wage Earners for the third quarter of 2026 versus 2025. Supplemental Security Income increases take effect for payments made for January 2027.
What will Medicare Part B cost?
The 2026 Medicare Trustees Report projects the standard Part B premium at $209.50 per month in 2027. That is $6.60 more than the confirmed $202.90 in 2026, according to AARP reporting in its Trustees summary.
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My Federal Retirement, citing the same Trustees report, puts the annual Part B deductible at $292, up from $283. The Centers for Medicare and Medicaid Services will announce final numbers in the fall.
How much of the COLA will you keep?
Part B premiums usually come straight out of Social Security checks. For an average retiree, Money calculates that a $75 gain minus $6.60 leaves about $68.40, explained in its premium analysis.
That figure is before income taxes and other health costs. Part D drug plans, Medigap, dental, and higher hospital bills can shrink it further.
Who is shielded from a larger premium bite?
Federal hold-harmless law, 42 U.S.C. Section 1395r(f), caps the Part B rise at the dollar gain in benefits. Get Out of Debt describes how it bars a premium hike from cutting a protected check below the prior December amount.
SmartAsset notes the shield applies only to narrow cases. It requires premiums withheld from benefits received in November and December. Check your December notice and January deposit to see your net change. New enrollees should budget for the full standard premium.
- Protected: Part B premiums withheld from ongoing Social Security checks
- Not protected: new enrollees, Medicaid-paid premiums, and high-income surcharges
- Not protected: Part D drug coverage and Medigap premiums
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