Utah · Social Security · 2027 COLA
2027 Social Security COLA: 3.6% Raise for Utah Retirees
The Social Security Administration announced the 2027 cost-of-living adjustment today. Here is what it means for a Utah retirement budget, before the Medicare Part B premium for 2027 is known.
The bottom line
- Social Security benefits rise 3.6% for 2027, up from 2.8% for 2026. SSA announced it on October 14, 2026.
- The average retired worker goes from about $2,095 to $2,170 a month, about $75 more. An average aged couple gains about $117.
- The raise starts with January 2027 payments. SSI recipients get it with the payment dated December 31, 2026.
- The 2027 Medicare Part B premium is not out yet. It is $202.90 in 2026, and for most people the increase can't be larger than their COLA in dollars.
- About 487,611 Utahns received Social Security in December 2025. A 3.6% raise on their benefits is roughly $35 million a month, by our estimate.
Social Security checks will be 3.6% larger in January 2027. For the average retired worker, that is about $75 a month, or roughly $900 over the year. Your own raise is 3.6% of your current benefit, so a Utah retiree drawing $2,600 gets about $94 more and one drawing $1,500 about $54. Two other numbers decide how much of the raise you keep: the 2027 Medicare Part B premium, which CMS has not yet announced, and whether the extra income changes your federal or Utah tax.
How big is the 2027 Social Security COLA?
The 2027 cost-of-living adjustment is 3.6%. SSA bases it on the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2025 to the third quarter of 2026. It applies to about 76 million people, including nearly 72 million Social Security beneficiaries. SSI's federal payment for an individual rises to $1,029 a month.
Sources: SSA 2027 COLA fact sheet — ssa.gov/news/en/cola/factsheets/2027.html; SSA Congressional Statistics, December 2025, Utah — ssa.gov.
For context, here are the last five COLAs. The 2027 increase is larger than each of the last three, though well below 2023's 8.7%.
Social Security COLAs effective January of each year. Source: SSA cost-of-living adjustment history — ssa.gov/oact/cola/colaseries.html.
How much more will you get in January 2027?
SSA publishes estimated average benefits for January 2027 before and after the 3.6% increase. The dollar raise depends on the size of the check, so larger family benefits rise more.
| Beneficiary type | Before the COLA | After the COLA | Monthly increase |
|---|---|---|---|
| All retired workers | $2,095 | $2,170 | +$75 |
| Aged couple, both receiving benefits | $3,238 | $3,355 | +$117 |
| Aged widow(er) alone | $1,936 | $2,005 | +$69 |
| Widowed mother with two children | $3,932 | $4,074 | +$142 |
| All disabled workers | $1,642 | $1,701 | +$59 |
| Disabled worker, spouse and one or more children | $2,970 | $3,077 | +$107 |
Estimated average monthly Social Security benefits payable in January 2027. Source: SSA 2027 COLA fact sheet — ssa.gov. Increases are the difference between SSA's rounded figures.
Monthly dollar increase by beneficiary type, from the SSA table above.
What does the COLA mean for Utah?
In December 2025, 487,611 Utahns received Social Security: 373,883 retired workers, 40,948 disabled workers, 24,270 widows, widowers and parents, 18,642 spouses and 29,868 children. Together they were paid about $980.5 million a month. Retired workers received $810.7 million of that, which works out to about $2,168 per retired worker. That is already above SSA's national pre-COLA estimate of $2,095 for January 2027, even though the Utah figure is a year older.
Applying 3.6% to that monthly total gives roughly $35.3 million more a month, or about $424 million over 2027, flowing to Utah households. That is our estimate on December 2025 rolls; the real figure will be somewhat higher because the number of beneficiaries keeps growing. Most of those households also have Medicare: CMS counted 490,235 Utahns with Medicare in June 2026.
Source: SSA Congressional Statistics, December 2025, Utah, Table 1 — ssa.gov; CMS Medicare Monthly Enrollment, Utah, June 2026 — data.cms.gov. Per-person average and COLA totals are our arithmetic.
Will the 2027 Part B premium take part of the raise?
Probably some of it. If you are on Medicare, your Part B premium is usually deducted from your Social Security payment. The 2026 standard premium is $202.90 a month with a $283 deductible. CMS had not announced the 2027 premium as of October 14, 2026; it usually does so in the fall, and your December COLA notice will show the amount deducted.
There is a protection for many retirees. Under the Social Security Act's hold-harmless provision, if your Part B premium was deducted from your benefit in the prior November and December, the dollar increase in your premium generally can't be larger than the dollar increase in your Social Security benefit. Your net check should not go down. The provision does not cover people who pay the income-related surcharge (IRMAA), people new to Part B in 2027, or people whose premium is paid by Medicaid.
One 2027 Medicare figure is already set: CMS raised the deductible on high-deductible Medigap Plans F, G and J to $3,050 for 2027.
Sources: CMS, 2026 Medicare Parts A & B premiums and deductibles — cms.gov; Social Security Act §1839(f) — ssa.gov; CMS, Medigap F, G & J deductible announcements — cms.gov.
What else changes for 2027?
The fact sheet also resets the wage-indexed figures. The ones Utah retirees ask about most are the earnings test for people still working before full retirement age and the maximum benefit.
| Figure | 2026 | 2027 |
|---|---|---|
| Cost-of-living adjustment | 2.8% | 3.6% |
| Maximum taxable earnings (Social Security payroll tax) | $184,500 | $192,300 |
| Earnings to earn one credit (quarter of coverage) | $1,890 | $1,970 |
| Earnings test, under full retirement age ($1 withheld per $2 over) | $24,480/yr | $25,560/yr ($2,130/mo) |
| Earnings test, year you reach full retirement age ($1 per $3 over) | $65,160/yr | $67,920/yr |
| Substantial gainful activity, non-blind (disability) | $1,690/mo | $1,770/mo |
| Substantial gainful activity, blind | $2,830/mo | $2,950/mo |
| Trial work period month | $1,210/mo | $1,270/mo |
| Maximum benefit, worker retiring at full retirement age | $4,152/mo | $4,188/mo |
Source: SSA 2027 COLA fact sheet — ssa.gov.
If you claimed early and still work in Salt Lake, Provo or St. George, the earnings limit matters most. In 2027 SSA withholds $1 for every $2 you earn above $25,560 before the year you reach full retirement age, and $1 for every $3 above $67,920 in that year, counting only months before your birthday month. Withheld benefits are not lost; SSA recalculates your benefit at full retirement age. Our guide to working while collecting Social Security walks through the math.
Does Utah tax the bigger check?
Utah starts with the Social Security that is taxable on your federal return, then gives a Social Security Benefits Credit. On 2025 Utah returns the credit is 4.5% of those taxable benefits, reduced by 2.5 cents for every dollar of income above $54,000 for single filers, $90,000 for married couples filing jointly and $45,000 for married filing separately. You can't take it and the general Retirement Credit on the same return. If your income is under the threshold, the credit usually wipes out Utah tax on your benefits.
A 3.6% raise is unlikely to push most households over by itself, but it adds to IRA withdrawals, pension income and Roth conversions. Federally, more of your Social Security can become taxable as total income rises. Medicare's income-related surcharge uses your tax return from two years earlier, so 2027 income drives 2029 IRMAA; in 2026 the first tier starts above $109,000 for individuals and $218,000 for joint filers. See our Utah Social Security tax guide and IRMAA guide.
Sources: Utah State Tax Commission, TC-40A instructions, Part 3, code AH (UCA §59-10-1042) — incometax.utah.gov; CMS 2026 IRMAA table — cms.gov. Utah's thresholds and rate can change for the 2026 and 2027 tax years.
Does a URS pension get the same raise?
No. A Utah Retirement Systems pension has its own COLA. URS calculates it each January from the prior calendar year's average Consumer Price Index, not SSA's third-quarter CPI-W, and pays it on the anniversary of your retirement date. It is capped at 4% for most systems, including Tier 1 Noncontributory, and 2.5% for Tier 2 and some public safety systems. Inflation above the cap carries forward to years when the increase is lower. URS's published rates were 2.9% for 2024 and 2.6% for 2025. A retired teacher in Logan with both a URS pension and Social Security will see two different raises at two different times of year.
Source: Utah Retirement Systems, Cost-of-Living Adjustment — urs.org.
What does this look like for a Utah couple?
Take a Layton couple, both retired, with Social Security benefits of $2,600 and $1,500 a month in 2026. At 3.6%, the larger check rises to about $2,694 and the smaller to about $1,554, about $148 more a month together, or about $1,771 over the year. Both pay Part B: $405.80 a month in 2026. Whatever the 2027 premium is, the couple's planning steps are the same:
- Wait for the real net. The December COLA notice shows the 2027 benefit and the Part B deduction. Budget on that, not on 3.6%.
- Read the Annual Notice of Change. If either spouse has a Medicare Advantage or Part D plan, a premium or drug-cost change for 2027 can offset part of the raise. They can compare plans through December 7.
- Check the Utah tax line. Add the extra Social Security to planned IRA withdrawals and see whether they cross the $90,000 joint threshold for the Social Security credit.
- Mind the two-year IRMAA look-back. A Roth conversion or large withdrawal in 2027 sets the 2029 Part B premium.
- Separate fixed costs from rising ones. A COLA tracks a price index, not your own costs. Property taxes, insurance and health care can rise faster. Income you control from savings, or, where it fits, an annuity, covers that gap; annuity guarantees depend on the issuing insurer's claims-paying ability.
Illustrative figures, not a projection of any person's benefit. SSA rounds monthly benefits down to the whole dollar.
Bring your COLA notice when it arrives, your Annual Notice of Change and your planned withdrawals. We will lay out your 2027 net income, the Utah tax line and your Medicare costs in plain English, with no pressure. Education, not advice. We do not offer every plan available in your area. By calling or texting, you agree we may contact you at the number you provide; reply STOP to opt out.
Talk to a planner →Frequently asked questions
How much is the 2027 Social Security COLA?
The 2027 cost-of-living adjustment is 3.6%, announced by the Social Security Administration on October 14, 2026. It is larger than the 2.8% increase for 2026. It reaches about 76 million people: nearly 72 million Social Security beneficiaries see it starting with their January 2027 payment, and Supplemental Security Income recipients starting with the payment dated December 31, 2026.
How much more will the average Utah retiree get each month in 2027?
SSA estimates the average retired-worker benefit rises from about $2,095 to $2,170 a month, about $75 more. Utah retirees average a bit more than that: in December 2025, 373,883 retired workers in Utah received $810,684 thousand a month, about $2,168 each by our arithmetic, so 3.6% is about $78 more. Your own raise is 3.6% of your own benefit.
Will the 2027 Medicare Part B premium eat up my COLA?
It will take part of it, but the 2027 Part B premium had not been announced as of October 14, 2026; CMS usually publishes it in the fall. The 2026 standard premium is $202.90 a month. If your premium is deducted from your Social Security check, federal law's hold-harmless rule generally keeps the dollar increase in your Part B premium from being larger than the dollar increase in your benefit, so your net check should not shrink. The rule does not protect people who pay an income-related surcharge (IRMAA) or who are new to Part B.
Does Utah tax my Social Security COLA?
Utah includes taxable Social Security in income, then offers a Social Security Benefits Credit. On 2025 Utah returns the credit is 4.5% of the benefits taxed on your federal return, reduced by 2.5 cents for each dollar of income above $54,000 (single) or $90,000 (married filing jointly). Many retirees below those lines owe no Utah tax on their benefits. A larger check can push some households over the line. This is education, not tax advice; confirm with a tax professional.
Does the Social Security COLA change my Utah Retirement Systems pension?
No. URS calculates its own COLA each January from the prior calendar year's average Consumer Price Index and pays it on the anniversary of your retirement date. It is capped at 4% for most systems, including Noncontributory, and 2.5% for Tier 2 and some public safety systems, with any excess carried forward. URS's most recent published rate was 2.6% for 2025. Questions go to URS at 801-366-7770.
When will I see the 2027 COLA notice?
SSA mails COLA notices in December to people who don't receive notices online. If you have a my Social Security account, you can read the notice in the account's Message Center; SSA says you need an account by November 18 to see it there. The notice shows your 2027 benefit and, if you are on Medicare, the 2027 Part B premium deducted from it.
Sources
- SSA — 2027 Cost-of-Living Adjustment (COLA) Fact Sheet (3.6% COLA; average benefits before and after; taxable maximum; quarter of coverage; earnings test; SGA; maximum benefit; SSI payment standard): ssa.gov/news/en/cola/factsheets/2027.html
- SSA — “Social Security Announces 3.6 Percent Benefit Increase for 2027” (October 14, 2026; people affected; notice timing): ssa.gov/blog/en/posts/2026-10-14.html
- SSA — Cost-of-Living Adjustment information: ssa.gov/cola
- SSA — Cost-of-living adjustment history: ssa.gov/oact/cola/colaseries.html
- SSA — Congressional Statistics, December 2025, Utah (beneficiaries and monthly benefits by type): ssa.gov/policy/docs/factsheets/cong_stats/2025/ut.html
- Social Security Act §1839 (Part B premium; hold-harmless provision in subsection (f)): ssa.gov/OP_Home/ssact/title18/1839.htm
- CMS — 2026 Medicare Parts A & B Premiums and Deductibles (Part B premium, deductible, IRMAA table): cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
- CMS — Medigap F, G & J deductible announcements (2027 high-deductible amount): cms.gov
- CMS — Medicare Monthly Enrollment, Utah, June 2026: data.cms.gov
- Utah State Tax Commission — TC-40A instructions, Social Security Benefits Credit (code AH): incometax.utah.gov/credits/ss-benefits
- Utah Retirement Systems — Cost-of-Living Adjustment: urs.org/Content/RetiredMembers/Cola
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, or legal advice. COLA, benefit and wage-indexed figures are from the Social Security Administration's 2027 COLA fact sheet and announcement of October 14, 2026; Utah beneficiary counts are from SSA's December 2025 Congressional Statistics for Utah, and the Utah per-person and statewide dollar estimates are our own arithmetic on that table. The 2027 Medicare Part B premium had not been announced when this was published. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not a government agency; we are not connected with or endorsed by the Social Security Administration, Medicare, the Centers for Medicare & Medicaid Services, Utah Retirement Systems, or any government program. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area; please contact Medicare.gov, 1-800-MEDICARE, or your State Health Insurance Assistance Program — in Utah, the Utah SHIP — to get information on all of your options. A $0-premium plan is not free; you still pay Part B premiums and cost-sharing. Annuity guarantees are subject to the claims-paying ability of the issuing company; there are no guaranteed investment returns. If you call or text us, you consent to be contacted at the number you provide about your options; message and data rates may apply, and you can opt out at any time by replying STOP.