Increase in Social Security

NY Times  - Retirees and other beneficiaries will receive the largest annual cost-of-living adjustment since 2023 in their Social Security checks next year, driven mainly by persistently high inflation.  The Social Security Administration announced a 3.6 percent annual cost-of-living adjustment, or COLA, on Wednesday after the release of government inflation data for September. The COLA is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The index values for July, August and September are averaged to produce the official adjustment figure.

For the average Social Security beneficiary, the COLA will translate to a $75 monthly increase, the government said. However, the actual amount for any retiree enrolled in Medicare will vary. The Part B premium, which covers outpatient care, is usually deducted from Social Security benefits, changing net COLAs. Separately, Social Security said the maximum amount of earnings subject to the Social Security payroll tax would rise to $192,300, up from $184,500 this year.

The Medicare board of trustees has projected that the monthly Part B premium will rise $6.60 in 2027 to $209.50. The final figure will be released this fall, but if the projection holds, most beneficiaries will receive net COLAs of at least 3 percent.