Your 2027 benefit after the 3.6% cost-of-living adjustment
Updated October 2026
The law ties the COLA to one price index, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Social Security averages the index for July, August and September of this year, divides it by the same three-month average from last year, and rounds the increase to the nearest tenth of a percent. Your primary insurance amount is raised by that percentage, and the monthly payment is then rounded down to the next lower dollar (20 CFR 404.304(f)).
BLS CPI-W values: July, August and September 2025 were 316.349, 317.306, 318.139, an average of 317.265. The same months of 2026 were 327.104, 328.481, 330.654, an average of 328.746. The ratio is 328.746 ÷ 317.265 = 1.0362, a 3.62% rise, which rounds to 3.6%. Applied to the average retired worker: $2,095 × 1.036 = $2,170.42, paid as $2,170. The 42 cents are not compounded away: each COLA is applied to your primary insurance amount, which Social Security keeps to the dime, and only the payment is rounded down to the whole dollar.
Current monthly benefit before Medicare is the gross amount on your 2026 benefit letter or in the Benefits section of your my Social Security account, not the deposit that reaches your bank. If you only know your deposit, add back the Part B premium ($202.90 for most people in 2026) and any federal tax you asked Social Security to withhold. Part B premium deducted now is 0 if you pay Medicare directly or your state pays it. Next year’s premium defaults to $202.90 because the 2027 amount was not public as of October 22, 2026; replace it once CMS announces it. The hold-harmless question asks whether the premium came out of your Social Security check in November and December of the prior year.
The results show the new gross benefit, the raise in dollars per month and per year, the Part B amount that will actually be deducted, and the change in what lands in your account.
The raise is a percentage, so larger benefits get more dollars. Deposits below assume the standard Part B premium stays at $202.90, which is a placeholder until CMS publishes the 2027 figure.
| Who | 2026 benefit | 2027 benefit | Monthly raise | Deposit now (after $202.90) | Deposit in 2027 if Part B is unchanged |
|---|---|---|---|---|---|
| Low earner or early claimer | $1,000 | $1,036 | +$36 | $797.10 | $833.10 |
| Mid-range retiree | $1,500 | $1,554 | +$54 | $1,297.10 | $1,351.10 |
| Average retired worker (SSA estimate) | $2,095 | $2,170 | +$75 | $1,892.10 | $1,967.10 |
| Above-average earner | $2,500 | $2,590 | +$90 | $2,297.10 | $2,387.10 |
| 2026 maximum at full retirement age | $4,152 | $4,301 | +$149 | $3,949.10 | $4,098.10 |
Each COLA is applied to the previous year's benefit, so they compound. A benefit of $1,000 in 2017 has grown to about $1,399 in 2027 through ten adjustments (rounded down to the dollar each year here for simplicity).
| COLA paid from | COLA | A $1,000 benefit from 2017 becomes |
|---|---|---|
| January 2018 | 2.0% | $1,020 |
| January 2019 | 2.8% | $1,048 |
| January 2020 | 1.6% | $1,065 |
| January 2021 | 1.3% | $1,079 |
| January 2022 | 5.9% | $1,142 |
| January 2023 | 8.7% | $1,242 |
| January 2024 | 3.2% | $1,282 |
| January 2025 | 2.5% | $1,314 |
| January 2026 | 2.8% | $1,350 |
| January 2027 | 3.6% | $1,399 |
Most people on Medicare have the Part B premium taken out of their Social Security check. Under 42 U.S.C. 1395r(f), if your premium was deducted in November and December of the prior year, your Part B premium cannot rise by more than your COLA dollar increase, so your net check cannot fall. The 2026 change shows how it works: the COLA was 2.8% and the standard premium rose from $185.00 to $202.90, an increase of $17.90. A beneficiary receiving $600 got a new benefit of $616, a $16 raise. Because $16 is less than $17.90, that person paid $201.00 for Part B instead of $202.90 and their deposit stayed the same. The rule does not protect people paying an income-related surcharge (IRMAA), people new to Part B, or people whose state pays the premium.
The COLA announcement also updates the dollar limits tied to average wages. From the SSA 2027 fact sheet (certified October 14, 2026):
| Item | 2026 | 2027 |
|---|---|---|
| COLA | 2.8% | 3.6% |
| Taxable maximum (6.2% Social Security tax) | $184,500 | $192,300 |
| Earnings test, under full retirement age | $24,480 a year | $25,560 a year |
| Earnings test, year you reach full retirement age | $65,160 a year | $67,920 a year |
| Maximum benefit at full retirement age | $4,152 | $4,188 |
| Earnings for one work credit | $1,890 | $1,970 |
| SSI federal payment, individual / couple | $994 / $1,491 | $1,029 / $1,544 |
| Substantial gainful activity (non-blind / blind) | $1,690 / $2,830 | $1,770 / $2,950 |
Above the under-full-retirement-age limit, $1 of benefits is withheld for every $2 earned; in the year you reach full retirement age, $1 for every $3 above the higher limit, counting only earnings before the month you reach it.
It does not estimate federal income tax on benefits or any withholding you elected, Medicare Part D or Medicare Advantage premiums, Part B surcharges for higher incomes (see the IRMAA calculator), state SSI supplements, or garnishments and overpayment recovery. Benefits that are reduced by the earnings test, or paid to a family under the family maximum, may not rise by exactly 3.6% in dollars. Your official figure is the COLA notice Social Security sends before the first increased payment; if it differs from this estimate, the notice is right, and a local Social Security office can explain the difference.
Applying 3.6% to the deposit. The COLA applies to the gross benefit before Medicare and tax withholding, so 3.6% of your deposit understates the raise. Expecting cents. Payments are whole dollars, so most raises come out a few cents short of the exact percentage. Looking for the raise in December. The COLA is for December benefits, which Social Security pays in January; only SSI, paid on the first of the month, arrives early (December 31, 2026, because January 1 is a holiday). Assuming the premium will stay the same. The 2027 Part B premium is not yet set, so treat any 2027 deposit figure as provisional until CMS announces it. Forgetting IRMAA. If you pay a surcharge, hold-harmless does not apply and your deposit can fall.