The bottom line

The 2027 COLA delivers the largest raise retirees have seen in four years, and for those in high-earning states like Connecticut, New Hampshire, and New Jersey, the increase will exceed $80 a month. But a bigger raise is ultimately a response to higher prices, not a gain in wealth.

For most retirees, the 3.6% increase is meant to help them stay even, not get ahead. Keeping an eye on Medicare premiums and reviewing your personal benefit notice in late November will give you the clearest picture of what your 2027 budget really looks like.