Updated

Updated · News10NBC · Oct 19

Social Security Raises 2027 Benefits 3.6% as Average Monthly Check Climbs to $2,170

Updated

Updated · News10NBC · Oct 19

Social Security Raises 2027 Benefits 3.6% as Average Monthly Check Climbs to $2,170

Q: Why might the outdated inflation formula used for your upcoming COLA actually leave you poorer despite the 3.6% raise?

Because the 3.6% COLA is based on an inflation formula that does not match how many older Americans actually spend their money, the raise may not preserve your buying power. Social Security uses the CPI-W, an index tracking spending by urban wage earners and clerical workers. Critics say that measure is outdated and too narrow because it reflects working households, not retirees, who typically spend more on healthcare, prescription drugs and housing. Those costs have often risen faster than the CPI-W suggests, so a 3.6% increase can still lag behind a senior’s real inflation rate. That gap is one reason many beneficiaries say the increase is not enough. AARP polling found large majorities of older adults believed a COLA closer to 5% to 8% would better cover daily expenses. Research cited in the broader coverage also shows Social Security benefits have lost purchasing power over time, in part because the formula does not fully capture the expenses older households face. Net income can shrink further once Medicare costs are deducted. Part B and Part D premiums often come straight out of Social Security checks, so if those premiums rise, they can absorb a meaningful share of the COLA. For some higher-income retirees, income-related Medicare surcharges can reduce the gain even more. So even with a bigger monthly check, you may be able to buy less if your personal costs, especially medical care and housing, rise faster than the CPI-W-based adjustment.

3 articles · Updated · News10NBC · Oct 19

$2,095 average Social Security checks will rise by $75 to $2,170 starting in January under a 3.6% cost-of-living adjustment announced by the Social Security Administration.
Inflation in gas, groceries, electricity and housing drove the increase, which officials said is larger than the 2026 adjustment and marks the biggest jump since 2023.
AARP said many recipients still see the boost as insufficient, with most respondents saying they would need a 5% to 8% increase to make their budgets work.
In New York, Social Security injects $90.6 billion into the economy and lifts 839,000 people out of poverty each year; nearly 170,000 people in Monroe County receive benefits.
The taxable maximum earnings subject to Social Security taxes will also increase to $192,300 from $184,500, extending the annual adjustment beyond retirees to workers.