Social Security sets 2027 COLA increase at 3.6%: What does that mean for Long Island seniors?

The Social Security Administration announced Wednesday a 3.6% cost-of-living increase for Social Security benefits in 2027 — the largest increase since 2023, but not enough to counter price increases seen on Long Island over the past year.

Starting in January, retirement beneficiaries will see an average increase of $75 per month, the Social Security Administration said in a news release. More than 480,000 retired workers on Long Island received Social Security benefits as of December 2025, according to the agency. The increase announced for 2027 falls behind inflation rates for the New York metro area, which was 4.5% year over year in September.

"The cost of living assessment, based on the consumer price index for wage earners and clerical workers, does not reflect the inflation and costs that seniors are seeing," said Martha Shedden, president of the Melville-based National Association of Registered Social Security Analysts, a national group of Social Security experts. The adjustment announced for 2027 is the largest since the 8.7% increase implemented in 2023, according to AARP.

The yearly effort to help benefits keep pace with a higher cost of living can be eroded by Medicare premiums and possibly income tax, so seniors aren't necessarily pocketing the full 3.6% increase, she said. 

As the senior population on Long Island grows, so has the number of seniors in the region living in poverty, increasing 62% between 2013 and 2023, Newsday has reported. That's more than twice the 24% growth rate during that period.

Seniors living alone on Long Island need an annual income ranging from $37,000 to $64,000 to cover a basic budget, depending on medical expenses and whether they rent or are still paying a mortgage on their home, according to the Elder Index, a University of Massachusetts Boston tool that measures the cost of aging in place. 

Around 45.3% of Long Island retirees older than 70 reported Social Security as their only retirement income in 2023, Newsday has reported. Financial experts typically recommend saving around 25 times your annual income for retirement, an amount that might surpass $3 million for Long Islanders, although that goal might differ based on spending. 

Mitch Rakita, 71, of Lake Grove said Social Security benefits are meant to supplement retirement savings, not be a sole source of income — although “every little bit helps.”

The retired business owner, who ran The Cheese Shop in Cedarhurst until 2018, saved for retirement through a 401(k) for more than 40 years.

"What is more concerning for seniors, and for the Long Island economy, is the cumulative impact of inflation over the past five or six years," said Steve Kent, an economist at Molloy University. "My guess would be whatever somebody's getting in their Social Security check does not buy nearly as much as that same check did five years ago."

There's not much seniors can do about the COLA increase, Shedden said, advising retirees budget carefully and remain aware of what they're spending money on. 

For most, the COLA increase for 2027 is “a good sign," said Jeffrey Goodrich, a California-based wealth manager. "Is it the final solution? No, but it takes a little bit of a lot to help a lot of people."

Individuals with online Social Security accounts will be able to view their COLA notice online in late November, and notices will come via mail in December. Individuals who do not already have an online account must enroll in paperless notices by Nov. 18 to view the COLA notice online, the Social Security Administration said. 

COLA calculations are set by the Social Security Act, which ties the annual adjustment to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as determined by the Department of Labor's Bureau of Labor Statistics, the Social Security Administration said in a statement. 

CORRECTION: More than 480,000 retired workers on Long Island received Social Security benefits as of December 2025, according to the Social Security Administration. An earlier version of this story cited the wrong data set from the agency.