Senior Citizens League Sees 3.5% 2027 Social Security COLA as Medicare Could Absorb 26%
Updated
Updated · 24/7 Wall St. · Oct 9
Senior Citizens League Sees 3.5% 2027 Social Security COLA as Medicare Could Absorb 26%
3 articles · Updated · 24/7 Wall St. · Oct 9
Summary
About 70 million Social Security beneficiaries are on track for a 3.5% 2027 cost-of-living adjustment, which would add roughly $70 a month to a $2,000 benefit before Medicare deductions.
Two of the three CPI-W months used in the formula are already in, with the index tracking near 3.3% after August rose 0.4%; September data will determine whether the final COLA lands closer to 3.3% or 3.5%.
Medicare Part B could sharply reduce that gain: last year's standard premium jumped $17.90 to $202.90, and a similar 2027 increase would consume about 26% of the projected Social Security raise.
The squeeze reflects a broader mismatch in the inflation measure, as CPI medical care rose only 1.6% through August while Americans in a New York Fed survey expected medical costs to climb 9.2% over the next year.
The next key dates are October 14 for the official COLA announcement and November for CMS to set the 2027 Part B premium, which will determine how much of the increase retirees actually keep in January.