Retirees are set for a bigger raise next year than in 2026, but Medicare costs will eat into much of it.

• The 2027 cost-of-living raise is expected to land near 3.5%, up from 2.8% this year and the biggest bump since 2023.
• On the average retirement check of about $2,000 a month, that is roughly $70 more — before deductions.
• Medicare Part B premiums are also projected to rise, trimming the real gain to about $63 a month.
• A bigger raise is not good news about the economy; it just means prices are climbing faster.
• Most seniors say these raises are too low, partly because the formula is built around working-age spending, not retiree costs like healthcare.

Outlook: The official COLA figure arrives this week, with final Medicare premiums confirmed in about three weeks and higher payments starting in January 2027.