Fastest Four: Social Security's 3.6% Raise - How Much Will You Actually Keep?

Social Security's 2027 COLA is 3.6%, the biggest raise in three years. But after taxes and Medicare, how much of it will retirees actually keep?

The Social Security Administration says the 3.6% cost-of-living adjustment adds about $75 a month to the average retirement check, raising it from $2,087.52 to $2,162.67. The COLA is based on the change in the CPI-W inflation index from one year's third quarter to the next. Then the real math starts. - Up to 85% of benefits can be taxable, so at an assumed 10% effective tax rate, about $6 of the raise goes to taxes. - Medicare Part B premiums come out of the same check and are projected to rise from $202.90 to $209.50 a month. - That leaves roughly $60. In the Senior Citizens League's 2026 Senior Survey, 89% of respondents said the 2026 COLA was too low and that their benefits would fall behind inflation. Social Security is foundational income you can't outlive, but it won't cover a rising cost of living on its own. That's why a retirement income plan blends your savings with income sources like Social Security and pensions, with a growth-oriented portion for money you won't need soon. If you're nearing retirement, this is worth a conversation before you set your income plan.