2027 Social Security COLA: What it means for your retirement budget.

What does the 2027 Social Security increase mean for your retirement budget?

Jeff Gove, Co-Founder and Financial Advisor at Stonebridge Wealth Systems, shares why Medicare costs and your overall income plan deserve attention alongside the announced 3.6% cost-of-living adjustment.

A few details to keep in mind:

• The 3.6% adjustment applies to your Social Security benefit before deductions. For most beneficiaries enrolled in Medicare Part B, premiums are deducted from their Social Security payments. If your premium increases, it could offset some of the additional benefit dollars you receive. The effect on your deposit depends on your individual circumstances.

• September’s reported 3.7% annual inflation rate measures CPI-U. Social Security’s COLA uses a different measure, comparing third-quarter average CPI-W figures from one year to the next.

• Your personal expenses may change differently from either inflation measure. Reviewing income, healthcare costs, and spending together can help you assess how your retirement plan fits your needs.

As you prepare for 2027, review your expected Social Security income, Medicare premiums, and monthly expenses together. Have questions about how these changes fit into your retirement income plan? Connect with our team at stonebridgeiwm.com/contact.

Sources: Social Security Administration, 2027 COLA Fact Sheet; U.S. Bureau of Labor Statistics, September 2026 CPI Report; Medicare.gov, premium payment information.

For informational purposes only. Not individualized investment, tax, or legal advice. Stonebridge Wealth Systems is not affiliated with or endorsed by the Social Security Administration or any government agency.