Your 2027 Social Security Raise Is 3.6%. Medicare Hasn't Taken Its Cut Yet.

Update, October 14, 2026: The number is in, and it’s 3.6%. September inflation came out at 8:30 this morning, and that finished the formula. CPI-W averaged 328.746 over July, August, and September, against 317.265 for the same months last year. That’s a 3.62% rise, and the law rounds to the nearest tenth. It’s the high end of the forecasts: AARP’s number, not TSCL’s 3.5%. In dollars, it’s $36 a month for every $1,000 of benefit, so a $2,000 check gets $72 more, starting with January payments.

You’ve already paid for it. CPI-W was up 3.9% over the year in September alone, and gasoline was up 34.2%. Because the raise averages three months, September’s 9.1% jump at the pump counts for only a third of it.

Now the subtraction. Medicare hasn’t set the 2027 Part B premium. The trustees project $209.50, up $6.60, which would leave about $65 of that $72. Check the official premium when Medicare announces it, then budget the raise.

Update, September 12, 2026: Two of the three months are in and the spread has mostly closed. August CPI landed September 11, and CPI-W came in up 3.5% over the year. The Senior Citizens League trimmed its 2027 projection to 3.5%, worth about $67.90 a month on an average retired-worker check of $1,940.08. AARP moved the other way the same day, to 3.6%, or roughly $75 a month. Call it three and a half percent until the September CPI settles it on October 14. Worth knowing what is holding that number up: all-items inflation ran 3.4% over the year and gasoline alone was up 27.4%. Your raise is being calculated off a fuel bill you already paid. TSCL executive director Shannon Benton named the timing problem: “When prices rise, they don’t rise next January when your benefit check goes up. They rise right now.”

Update, August 17, 2026: The July CPI landed August 12, the first of the three months that actually count, and the 3.8% neighborhood below did not hold. Estimates now run 3.2% to 3.6%. The official number lands October 14. Plan on the low end.

If you’re on Social Security, the 2027 raise you were counting on just got smaller on paper.

One month ago, one closely watched forecaster was calling for a 4.7% cost-of-living adjustment next January. After the July 14 inflation report showed prices actually fell in June, the same analyst dropped the number to 3.7%. The Senior Citizens League, which has been running its own tally all year, moved to 3.8% and has since cut again to 3.6%.

Take a $2,000 average retired-worker check. A 4.7% raise would have added about $94 a month. At 3.6%, you’re looking at closer to $72. It’s not a disaster. It’s about $264 a year, gone.

What actually happened

The Bureau of Labor Statistics reported June CPI on July 14. The all-items index dropped 0.4% for the month, the biggest one-month decline since April 2020. Twelve-month inflation cooled to 3.5%. Energy prices, the thing that had been driving forecasts higher all spring, fell 5.7% in a single month. Gas at the pump did most of that work.

That matters here because the COLA isn’t set by opinion. It’s set by a formula. The Social Security Administration averages the CPI-W, the version of the index that tracks urban wage earners, over July, August, and September, and compares it to the same three months a year earlier. The percentage difference is your raise.

June’s number isn’t in that window. But it’s the last read forecasters had before the window opened. When it came in soft, the projections came in with it.

The July print came in, and it went the other way

July’s CPI-W landed August 12, the first of the three months that actually count. It was flat for the month and up 3.4% over the year.

Then the forecasters stopped agreeing with each other. The Senior Citizens League came down to 3.6%. AARP is at 3.5%. The Committee for a Responsible Federal Budget is at 3.2%. Four tenths of a point separates people reading the same report, which tells you how much August and September still matter. At TSCL’s 3.6%, the average retired worker’s check goes from $1,937.53 to $2,007.28, a raise of $69.75 a month.

TSCL executive director Shannon Benton named the reason plainly: “One of the wildcards in this year’s forecast has been inflation’s volatility.”

None of it is settled until October 14, right after the September CPI is published.

What eats into the raise

Medicare Part B does. The standard premium is deducted straight from Social Security checks, and it jumped from $185 to $202.90 in 2026, a $17.90 monthly bite. The Medicare trustees currently project the 2027 premium at about $209.50, another $6.60 a month.

For the first time since 2023, the COLA is expected to outpace the Part B hike in percentage terms. So the raise you keep is real. It’s just smaller than the headline number, as it always is.

What to do this month

You don’t need to do anything with the estimate itself. It’s an estimate. The number that hits your bank account is whatever the SSA announces in October.

Two moves are worth making now if the COLA math matters to your budget. Plan around the low end of the range. As of September 12 that’s 3.5%, not 3.6%, and building a budget on the high estimate and getting the low one is a harder conversation than the reverse. And check whether you’re paying the Part B standard premium or the income-adjusted IRMAA version. If you crossed an IRMAA bracket in 2025, your 2027 premium bite is going to be bigger than $209.50, and you’ll want to know that before Medicare tells you in November.

File the rest away until October 14. That’s when the number gets real.

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