Social Security COLA for 2027 is 3.6%. Is it enough for Tennessee?

More than 150,000 Tennessee residents will get a 3.6% benefit increase next year, the Social Security Administration said. The cost-of-living adjustment (COLA) is now 3.6%, up from 2.8% in 2026 . This is the largest increase since the the 8.7% COLA for 2023, when inflation hit a 40-year high. In Sep

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What is the story about?

More than 150,000 Tennessee residents will get a 3.6% benefit increase next year, the Social Security Administration said.

The cost-of-living adjustment (COLA) is now 3.6%, up from 2.8% in 2026

. This is the largest increase since the the 8.7% COLA for 2023, when inflation hit a 40-year high. In September, annual inflation was 3.7%, mainly due to a 5.2% increase in energy prices. Excluding energy and food, core inflation was 2.6%.

Annual COLAs aim to help seniors and other beneficiaries keep up with inflation and maintain their standard of living. However, many recipients feel that these adjustments do not meet their needs. According to a recent survey by AARP, which represents people aged 50 and older, only 23% of adults in this age group believe

that a COLA of about 3.5% is enough to cover rising prices. The survey included 1,023 adults 50 and older and was conducted in September.

"A 3.6% COLA will boost average benefits by about $900 per retiree but would provide an over $2,200 increase for the very richest beneficiaries," the Committee for a Responsible Federal Budget wrote. "The highest earning couples who retired this year at their normal retirement age will enjoy a $3,600 combined increase – enough to push their combined benefits above $100,000 annually."

Here's what to know about the upcoming adjustment.

How many dollars is a 3.6% COLA worth?

Starting in January, the average monthly benefit check will increase from $2,087.52 to $2,162.67 due to the 3.6% COLA, according to AARP. This means an extra $75.15 each month, or about $902 each year, bringing the annual total to $25,952.04.

The Centers for Medicare & Medicaid Services (CMS) will announce the Medicare Part B premium for 2027 in the coming weeks. According to the 2026 Medicare Trustees Report, the standard monthly premium is projected to be $209.50. This is an increase of $6.60, or about 3.25%, from this year's premium of $202.90.

Why isn't COLA enough?

The COLA is based on the inflation rate from July to September, which measures what working households in large cities spend compared with the previous year.

Premiums for standalone Part D prescription drug plans are also likely to increase when CMS announces the 2027 Medicare premiums. CMS discontinued a subsidy program for insurance companies that supported standalone Part D drug plans and helped keep enrollees' premiums lower.

Is the 2027 COLA enough for Tennessee?

Social Security checks in 2027 will average $2,162.67 per month, or $25,952.04 annually. AARP's survey found that 70% of adults 50 and older believe that a 5% to 8% increase would help Social Security recipients cover their daily expenses.

According to the living wage calculator from the Massachusetts Institute of Technology, a single adult in Tennessee would need to earn $21.61 an hour to live comfortably, which equates to roughly $3,460 a month, or $41,520 a year.

This total includes food, medical care, housing, transportation, internet and other expenses an individual may have while living alone.

The trust fund that helps pay Social Security benefits is expected to run out of money by the end of 2032, according to the program's trustees. If this happens, the law will require a 22% cut in benefits so that the program's costs do not exceed its income.

Congress and others have proposed ways to prevent cuts to Social Security benefits, but none of these ideas have become law yet. Some proposals suggest giving all Social Security recipients the same dollar increase each year, based on the benefits of people in the lowest income group. Another idea is to cap Social Security benefits at $100,000 per year for couples.