Social Security beneficiaries to receive 3.6% COLA increase in 2027

Social Security beneficiaries in the United States are set to receive a 3.6% cost-of-living adjustment (COLA) in January 2027. This increase is expected to add approximately $75 per month to the average retired worker's payout and $59 per month for workers with disabilities.

While the COLA aims to offset inflation, rising healthcare costs may diminish the net impact for some. Medicare Advantage premiums are projected to increase in 19 states, including Wyoming, California, and Texas, which could absorb a significant portion of the monthly increase. Additionally, the Medicare Part D maximum deductible is expected to rise from $615 to $700 in 2027.

Data from the Social Security Administration also highlights a persistent gender gap in benefits. As of December 2025, the average monthly benefit for women was $1,872.43, compared to $2,282.28 for men. This gap widens with age, reaching approximately $505.54 per month for those claiming at age 70.

Policy discussions continue regarding the program's long-term sustainability, including proposals that would tie COLA eligibility to income thresholds, potentially denying increases to higher-income beneficiaries.