The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, marking the largest increase in three years. This increase follows estimates from various organizations forecasting a COLA between 3.5% and 3.6%. For comparison, the average Social Security COLA over the past decade has been approximately 3.1%, while 2026 saw a 2.8% adjustment.
Despite the above-average increase, survey data indicates significant concern among older Americans about adequacy. An AARP poll of over 1,000 adults aged 50 and older found that 76% do not believe a 3.5% adjustment would be sufficient to meet their living expenses. The survey respondents indicated that increases between 5% and 8% would be more appropriate to maintain purchasing power. A 3.5% adjustment would translate to approximately $67.90 more monthly for the average beneficiary, bringing payments to around $2,008 from $1,940.
Rising costs beyond Social Security present additional challenges for retirees. Medicare Part B premiums are projected to increase to $209.50 monthly in 2027 from $202.90 in 2026, while prescription drug plan premiums under Part D may also see modest increases. These costs are typically deducted directly from Social Security checks, potentially offsetting much of the benefit increase for many recipients. Individual retirees express concern that escalating expenses for housing, food, and transportation will continue to outpace benefit adjustments.
The Trump administration recently announced one-time $90 payments to over 20 million Medicare Part B enrollees to assist with premium costs, though some beneficiaries questioned whether such payments should instead have been directed toward the Medicare trust fund, which faces projected depletion in 2033.
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