Bobby Garon: New 3.6% Social Security COLA for 2027 Will Feel Smaller Than It Looks for Most Retirees

As the Social Security Administration confirms the largest cost of living adjustment since 2023, Naples, Florida-based finance and insurance professional Bobby Garon, says rising Medicare premiums and a higher payroll tax cap mean retirees and workers alike should look past the headline number.

NAPLES, Fla., Oct. 16, 2026 /PRNewswire/ -- Bobby Garon, a Naples, Florida-based finance and insurance professional, is urging retirees to look beyond the headline following the Social Security Administration's October 14 announcement of a 3.6 percent cost of living adjustment (COLA) for 2027. While the increase is the largest since 2023, Garon says the amount most retirees see in their bank accounts will likely be smaller, and he breaks down why in a new blog on his website, The 2027 Social Security COLA Is Official. Here's What 3.6% Really Means for You.

"A bigger COLA sounds like straightforward good news, and in most ways it is," said Bobby Garon. "But I always tell clients to check what else moves alongside it."

What Is the 2027 Social Security COLA?
According to the Social Security Administration, Social Security and Supplemental Security Income (SSI) payments for 76 million Americans will increase 3.6 percent in 2027, raising the average retirement benefit by about 75 dollars per month. Nearly 72 million Social Security beneficiaries will see the increase beginning in January 2027, and about 7.3 million SSI recipients will see it on December 31, 2026. The adjustment is up from 2.8 percent in 2026 and is the largest since 2023's 8.7 percent increase.

How Medicare Part B Premiums Can Shrink the COLA
Garon says the biggest factor retirees overlook is the Medicare Part B premium, which for most beneficiaries is deducted directly from their Social Security payment. The official 2027 premium is expected from Medicare in November, with current projections pointing to roughly 209.50 dollars a month, up from 202.90 dollars in 2026.

"Once the new Part B premium is confirmed, that's the number I'd use when updating a monthly budget," Garon said. "The increase you feel is usually smaller than the percentage you read about."

What the 2027 Social Security Changes Mean for Workers
The October 14 announcement also raised the maximum amount of earnings subject to Social Security tax to 192,300 dollars in 2027, up from 184,500 dollars this year.

"For younger professionals and higher earners, that's the part of this announcement that touches your paycheck," Garon said. "Social Security affects your take-home pay long before you ever collect a benefit."

Why Garon Is Keeping an Eye on the Blue Collar Social Security Fairness Act
Garon's full breakdown also covers the Blue Collar Social Security Fairness Act, a bill introduced in September by Rep. Haley Stevens of Michigan that would let workers in physically demanding jobs claim full benefits at 60 instead of 67. Garon says the bill reflects a real conversation about retirement age and physical work, but cautions that it remains a proposal.

"I wouldn't encourage anyone to build a retirement plan around it until it becomes law," Garon said.

What Retirees Should Do Next
Garon recommends that beneficiaries create or log in to their my Social Security account by November 18 to view their personal COLA notice online in late November, then update their 2027 budget once the Part B premium is final. For anyone within a decade of retirement, he suggests using the announcement as a prompt to look at how Social Security fits into a broader income plan, a topic he covers in how to build a retirement paycheck you can count on.

Read Bobby Garon's complete analysis of the 2027 Social Security COLA at: https://bobbygaron.com/bobby-garon-2027-social-security-cola/.

Frequently Asked Questions

How much is the 2027 Social Security COLA?
3.6 percent, or about 75 dollars more per month for the average retired worker, beginning in January 2027.

Will retirees receive the full 3.6 percent increase?
Not always. For most retirees, Medicare Part B premiums are deducted from Social Security payments, so a higher 2027 premium will offset part of the increase.

When is the 2027 Medicare Part B premium announced?
Medicare typically announces the new Part B premium in November.

About Bobby Garon

Bobby Garon is a finance and insurance professional based in Naples, Florida, where he lives with his wife and infant son. He holds FINRA Series 6, Series 63, and Securities Industry Essentials (SIE) licenses, along with Florida Life and Annuity and Property & Casualty insurance licenses. His professional experience includes client-facing roles at JPMorgan Chase & Co. and Morgan Stanley, as well as work as a Licensed Commercial and Personal Lines Insurance Advisor at Brown & Brown Insurance. He writes about financial education, leadership, personal growth, family, and community involvement on his website bobbygaron.com, as well as on Substack and Medium. His licenses and employment history can be independently verified through FINRA BrokerCheck.

SOURCE Bobby Garon