2027 Social Security COLA May Not Cover Rising Senior Costs

The 2027 Social Security cost-of-living adjustment will likely be 2.8%, the same as in 2026. That means the average retired worker will receive about $57 more per month, raising their typical check to $2,081.46. But this increase may not last long in a typical retirement budget. Medicare Part B premiums jumped 9.7% in 2026 to $202.90 per month, reducing the effective raise to about $38. The 2.8% COLA also risks pushing more retirees over the $25,000 (individual) or $32,000 (couple) income threshold, making up to 85% of their benefits taxable. Meanwhile, seniors face rising costs in health care, prescriptions, and housing—categories that have consistently outpaced the COLA. According to the Bureau of Labor Statistics, medical care and shelter costs each rose 3% over the past year. The average Social Security payment has lost roughly 20% of its buying power since 2010, even when the COLA matched headline inflation.