If you receive Social Security, Supplemental Security Income (SSI), or Medicare, the months leading into a new year are a good time to review your benefits and make sure you understand what you're currently receiving.
That's particularly important as beneficiaries prepare for the 2027 Social Security cost-of-living adjustment, commonly called the COLA.
The Social Security Administration calculates COLAs according to federal law and announces the adjustment annually. The 2027 COLA has not yet been officially announced as of early September 2026, so beneficiaries should be cautious about online claims stating that a particular percentage has already been finalized.
What you can do right now is prepare.
Knowing your current Social Security benefit, understanding your Medicare Part B costs, checking your personal information, and keeping important benefit documents together can make it much easier to understand changes when your 2027 benefit information becomes available.
Here are several steps seniors and other Social Security beneficiaries should consider taking before the new year.
1. Check Your Social Security Information
Start by reviewing the personal information Social Security has associated with you.
Your Social Security account can provide access to important information about your benefits and earnings history.
Review information such as your:
- Name
- Contact information
- Earnings record
- Current benefit information
- Available Social Security notices
If something doesn't look right, don't wait until your benefit amount changes to investigate it.
Keeping your information accurate can make dealing with Social Security much easier if you need assistance later.
2. Know Your Current Social Security Benefit
Before the 2027 COLA takes effect, know what you're receiving today.
This gives you a baseline for understanding future changes.
Review your most recent Social Security benefit information and make a record of your current payment.
Don't simply rely on what you remember seeing deposited into your bank account. Medicare premiums and other deductions can affect the amount that ultimately reaches your account.
It can be helpful to distinguish between your benefit amount and your net payment after applicable deductions.
When updated benefit information becomes available, you'll then have something concrete to compare it with.
Why Knowing Your Baseline Matters
Suppose you receive a different amount in 2027.
Without documentation, you might wonder:
- Was this entirely due to the COLA?
- Did my Medicare premium change?
- Was another deduction added?
- Did an existing deduction change?
- Is the payment amount correct?
Having your previous benefit records makes those questions much easier to investigate.
Keep copies of relevant notices instead of discarding them once you've read them.
3. Understand That the 2027 COLA Is Not Final Yet
This point is especially important.
You may see predictions about the 2027 COLA in news articles, financial publications, or social media posts.
Those predictions are not the same thing as the official COLA.
The Social Security Administration determines the annual adjustment using the inflation measure established under federal law and announces the result after the necessary data becomes available.
Until SSA announces the official number, projections should be treated as estimates.
Once the official adjustment is announced, beneficiaries can begin looking at what it could mean for their own benefits.
However, remember that multiplying your current bank deposit by the COLA percentage may not tell you exactly what will appear in your bank account.
Other factors, including Medicare premiums and applicable deductions, can affect your net payment.
4. If You Receive Both Social Security and SSI, Review Both Benefits
Some Americans receive both Social Security benefits and Supplemental Security Income.
If that's your situation, don't assume an increase in one payment means your combined monthly income will increase by exactly the same amount.
SSI is a needs-based program, and other income can affect SSI eligibility and payment calculations.
For that reason, people receiving both benefits should pay close attention to official notices explaining their new payment amounts.
If you don't understand how an adjustment affects your particular situation, contact the Social Security Administration and ask for an explanation based on your record.
Keep notes about important conversations, including the date of the call and what you were told.
5. Review Your Medicare Part B Premium
Social Security and Medicare are closely connected for many retirees because Medicare premiums may be deducted directly from Social Security benefits.
That means your Social Security benefit can increase while your actual bank deposit changes by a different amount.
Before 2027, make sure you understand your current Medicare costs.
Review:
- Your Medicare Part B premium
- Whether the premium is deducted from Social Security
- Any additional Medicare premium adjustments
- Your current Medicare coverage
- Other deductions affecting your Social Security payment
Knowing these numbers gives you a clearer picture of your actual retirement healthcare expenses.
6. Find Out Whether You're Paying IRMAA
Higher-income Medicare beneficiaries may pay an additional amount for Medicare Part B and Part D called the Income-Related Monthly Adjustment Amount, or IRMAA.
IRMAA is based on income information available to Social Security from the IRS.
For some retirees, that can create an issue when current income is significantly lower than income in the tax year being used to determine the surcharge.
For example, someone may have recently:
- Stopped working
- Reduced their work hours
- Lost pension income
- Experienced the death of a spouse
- Divorced
- Experienced another qualifying life-changing event
If you're paying IRMAA and have experienced a qualifying life-changing event that reduced your income, you may be able to ask Social Security to reconsider the adjustment.
7. Understand Form SSA-44
Form SSA-44 is the Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event form.
It is not a general form that every Medicare beneficiary needs to file.
Instead, it may be appropriate when you're subject to IRMAA and have experienced one of the qualifying life-changing events recognized by Social Security that results in reduced income.
If you think this applies to you, review the current Social Security requirements or speak directly with SSA before submitting anything.
You may need documentation supporting both the life-changing event and your change in income.
Taking care of an applicable IRMAA issue can be important because Medicare premiums can directly affect how much of your Social Security benefit you ultimately receive.
8. Review Any Other Benefits You Receive
Social Security may not be your only source of benefits.
Some people also receive assistance or supplemental benefits administered through state or other government programs.
Eligibility and payment calculations for these programs can differ.
If you receive another income-based benefit, don't automatically assume a federal Social Security COLA will be added dollar-for-dollar on top of every other payment you receive.
Instead, contact the agency administering that particular benefit and ask how an increase in Social Security income could affect your eligibility or payment.
The important point is to understand your individual situation rather than relying on general advice found online.
9. Create a Benefits Folder
One of the easiest ways to prepare for 2027 has nothing to do with complicated Medicare or Social Security calculations.
Simply get organized.
Create a physical or digital folder containing your important benefit information.
Consider keeping copies of:
- Social Security benefit notices
- Your current Social Security benefit information
- Medicare statements
- Medicare premium notices
- IRMAA notices, if applicable
- Relevant tax documentation
- Insurance information
- Notes from conversations with government agencies
- Other benefit correspondence
You don't necessarily need years of paperwork sitting on your kitchen table.
The goal is simply to have recent, relevant documentation available when you need it.
10. Compare Your 2027 Notice With Your Records
When official 2027 benefit information becomes available, compare it with the records you've saved.
Look at:
- Your previous benefit amount
- Your new benefit amount
- Medicare deductions
- Other deductions
- Your expected net payment
If something doesn't make sense, investigate it.
Don't assume every difference is an error, but don't ignore a discrepancy you can't explain either.
There may be a legitimate reason for the change.
Having organized documentation will make it much easier to ask the right questions.
Don't Rely on Social Media Rumors About the 2027 COLA
Social Security topics generate enormous attention online, particularly when a new COLA is approaching.
Unfortunately, that also means misinformation can spread quickly.
Be cautious with headlines claiming:
- The 2027 COLA has already been finalized before SSA announces it
- Everyone must take a particular action by an unofficial deadline
- Your Social Security benefits will disappear if you don't complete an online task
- You must pay someone to receive your COLA
- Someone needs your Social Security number or banking information to "activate" an increase
When dealing with Social Security and Medicare, rely on official government information and qualified professionals.
What Does the COLA Mean for Your Medicare Planning?
The Social Security COLA and Medicare are separate issues, but they can interact in ways that matter to your household budget.
For many Medicare beneficiaries, retirement planning isn't simply about asking:
"How much will my Social Security increase?"
A better question is:
"After Medicare premiums and other applicable deductions, what will my actual monthly income look like?"
That's why this is also a good time to review your Medicare coverage.
Medicare Advantage plans, prescription drug plans, provider networks, premiums, copays, and other benefits can change from one year to the next.
Your healthcare needs can change too.
Understanding both your income and your healthcare expenses gives you a much clearer picture of your financial position for the coming year.
Frequently Asked Questions About the 2027 Social Security COLA
Has the 2027 Social Security COLA been announced?
As of early September 2026, the official 2027 COLA has not yet been announced. Social Security announces the annual COLA after the data used to calculate it becomes available.
Do I need to apply to receive the Social Security COLA?
Generally, the annual COLA is applied automatically to eligible Social Security benefits. Beneficiaries should be cautious about anyone claiming they must pay a fee or provide sensitive information to "activate" a COLA.
Why might my bank deposit increase by a different amount than I expected?
Your net Social Security payment can be affected by deductions such as Medicare premiums. The COLA percentage alone therefore may not tell you exactly how much additional money will appear in your bank account.
What is IRMAA?
IRMAA stands for Income-Related Monthly Adjustment Amount. Certain higher-income Medicare beneficiaries pay additional amounts for Medicare Part B and Part D.
Can I request a lower IRMAA if my income dropped?
Potentially. Social Security allows beneficiaries who experience certain qualifying life-changing events that reduce income to request a new determination. Form SSA-44 may be used in qualifying circumstances.
Should I review my Medicare plan before 2027?
Yes. Medicare plan costs, benefits, prescription coverage, and provider networks can change. Reviewing your coverage annually can help you understand whether your current plan continues to meet your needs.
Prepare Now Instead of Being Surprised Later
You don't need to know the final 2027 COLA today to start preparing.
The most useful steps are straightforward:
Know your current Social Security benefit. Review your Medicare premiums. Understand whether you're paying IRMAA. Keep your benefit documents organized. Pay attention to official notices. And ask questions when something doesn't make sense.
A little preparation now can make it much easier to understand your benefits when 2027 arrives.
Have Questions About Your Medicare Coverage?
Social Security benefit questions should be directed to the Social Security Administration, but if you're reviewing how Medicare coverage fits into your overall retirement planning, Derek Rogers can help you understand your Medicare insurance options.
HealthMarkets Insurance – Derek Rogers
10199 Southside Boulevard #100
Jacksonville, FL 32256
Phone: (904) 536-8054
Email:
derek.rogers@healthmarkets.com
Contact Derek for a free, no-obligation consultation to review your Medicare coverage and discuss available insurance options for your needs.
