New reports show changes to the expected 2027 Cost of Living Adjustment increase for Social Security.
As reported by the Citizen Times, the Senior Citizens League previously estimated that the 2027 COLA increase would be the same as the 2026 increase: 2.8%. This would have increased the average benefits check for each retired worker by $56.69, from $2,024.77 to $2,081.46.
According to the most recent reports from USA TODAY, however, the latest estimates place the 2027 COLA increase at 3.7%. Though this is a rise from the most recent report, previous reporting from USA TODAY reflects a decline of a full percentage point in the expected rise since last month.
USA TODAY noted that the drop reflects cooling inflation in June, mostly due to lower gasoline prices. Overall annual consumer prices rose 3.5% in June, down from 4.2% in May. The core rate, excluding the volatile energy and food sectors, was at 2.6%.
Additionally, experts say much or all of the estimated COLA increase will likely be swallowed by expected increases in Medicare and drug costs. Here’s what to know in North Carolina as numbers fluctuate.
What does COLA mean?
COLA stands for cost-of-living-adjustment. These automatic changes are made to Social Security and Supplemental Security Income benefits to keep the purchasing power of these payments constant as prices rise.
What is the expected COLA increase for 2027?
Social Security checks are expected to increase next year by 3.7%, based on the June consumer inflation report as reported by USA TODAY.
How much money will the 2027 COLA adjustment be?
A Social Security COLA of 3.7% would increase by $74 on an average benefit of $2,000 per month, according to calculations done by Mary Johnson, a Social Security and Medicare analyst who tracks and calculates the COLA estimate.
What is the Social Security COLA increase for 2026?
Social Security and SSI benefits for 75 million Americans increased by 2.8% in 2026.
What are the COLA increases for the last five years?
According to the Social Security Administration, the past five years of COLA increases have been:
What is the average Social Security payment?
The average monthly Social Security benefit for all beneficiaries was $1,931.05 in March 2026, according to SSA data.
How many people in North Carolina receive Social Security benefits?
The SSA website lists 217,030 N.C. residents receiving SSI benefits as of May 2025. The most recent OASDI data available for the state is for December 2024, when the agency identified 2,329,477 beneficiaries.
How many people in the U.S. receive Social Security benefits?
Across the nation, 74,090,000 people were receiving Social Security benefits as of May 2025. This includes 57,164,000 eligible due to their age and 16,927,000 eligible due to blindness, another disability, or other reasons.
Iris Seaton is the trending news reporter for the Asheville Citizen Times, part of the USA TODAY Network. Reach her at iseaton@citizentimes.com.
This article originally appeared on Asheville Citizen Times: Social Security 2027 COLA increase could be eaten up by Medicare costs
