Financial and insurance professionals in Naples, Florida, USA, Bobby Garon, stated that with the Social Security Administration confirming the largest cost-of-living adjustment since 2023, both retirees and current employees should not just look at the headline figures.
On October 16, 2026, Naples, Florida / PRNewswire / -- Bobby Garon calls on retirees not to just look at the surface numbers after the Social Security Administration announced on October 14 that the cost-of-living adjustment ( COLA ) to Social Security benefits for 2027 would be 3.6%. Although this increase is the largest since 2023, Garon says that most retirees may see a smaller amount in their bank accounts. He explains the reasons in his new blog post on his website titled "2027 Social Security COLA Officially Announced: What Does 3.6% Really Mean for You?"
“A higher COLA sounds like good news straight away, and indeed it is in most respects,” said Bobby Garon, “but I always remind my clients to check what else is changing in sync as well.”
What is the social security COLA in 2027?
According to data from the U.S. Social Security Administration, in 2027, the social security benefits and supplementary income of 76 million Americans ( SSI ) will be increased by 3.6%, resulting in an average monthly increase of about $75 in retirement benefits. Nearly 72 million Social Security recipients will start seeing this increase from January 2027, while around 7.3 million recipients of ( SSI ) will see the adjustment take effect on December 31, 2026. This increase is higher than the 2.8% in 2026 and represents the largest increase since the 8.7% rise in 2023.
Medicare Part B How does premium weaken COLA
Garon says that the biggest factor that retirees are most likely to overlook is the Medicare Part B premium. For most beneficiaries, this premium is directly deducted from their social security benefits. Medicare The official premium for 2027 is expected to be announced in November; current forecasts indicate it will be around $209.50 per month, which is higher than the $202.90 in 2026.
“Once the new Part B premium is confirmed, that will be the figure I will use when updating the monthly budget,” said Garon. “The actual increase you feel will usually be smaller than the percentage you see.”
What do the changes to social security in 2027 mean for salaried workers?
The announcement on October 14 also raised the maximum income limit for social security tax payments in 2027 to $192,300, which is higher than this year's $184,500.
"For young professionals and high-income individuals, this is the part of this announcement that truly affects your salary," said Garon, "Before you even receive the benefits, social security has already impacted your net income."
Why does Garon follow Blue Collar Social Security Fairness Act?
The complete interpretation of Garon also mentions Blue Collar Social Security Fairness Act. This is a bill proposed in September by Representative Haley Stevens of Michigan, which aims to allow workers engaged in physical labor to start receiving full benefits at the age of 60 rather than 67. Garon says that this bill reflects a genuine discussion about retirement age and physical labor, but he reminds that it is still just a proposal.
"Before it becomes law, I would not advise anyone to base their retirement planning on this bill," said Garon.
What should retirees do next?
Garon It is recommended that beneficiaries create or log in to their my Social Security accounts before November 18th, in order to view personal COLA notifications online in late November. After the Part B premium is finally determined, they can then update their 2027 budget. For those with less than ten years until retirement, he suggests considering this announcement as an opportunity to re-evaluate the role of social security in a broader income planning strategy; he also discusses this topic in regards to how to establish a reliable retirement income.
For a complete analysis of Bobby Garon regarding social security in 2027 by COLA, please visit: https :// bobbygaron.com / bobby-garon-2027-social-security-cola /.
Frequently Asked Questions
What is the social security contribution rate in 2027 COLA?
It is 3.6%, which means that on average, retired workers will receive about an additional $75 per month starting from January 2027.
Will retirees receive the full 3.6% increase?
Not necessarily. For most retirees, the Medicare Part B premiums will be deducted from their social security benefits, so the higher premiums in 2027 will offset some of that increase.
When will the premiums for 2027, Medicare Part B, be announced?
Medicare usually announces new Part B premiums in November.
About Bobby Garon
Bobby Garon is a financial and insurance professional based in Naples, Florida, where he resides with his wife and young son. He holds licenses FINRA Series, Series 63, and Securities Industry Essentials ( SIE), as well as a license for life insurance and annuities, property, and accident insurance in Florida. His professional experience includes working in customer-facing roles at JPMorgan Chase and Morgan Stanley, and he has also served as a licensed commercial and personal insurance advisor at Brown & Brown Insurance. On his personal websites bobbygaron.com, Substack, and Medium, he writes about financial education, leadership, personal growth, family, and community involvement. His licenses and work experience can be independently verified through FINRA BrokerCheck.
SOURCE Bobby Garon
