The average benefit rises about $75 a month, but some retirees say rising costs will eat it up. Nearly 1.8 million New Jerseyans receive Social Security.
New Jersey retirees will see bigger Social Security checks starting in January, though some say the increase won’t go far enough.
The Social Security Administration (SSA) announced in mid-October a 3.6% cost-of-living adjustment (COLA) for 2027, raising the average monthly benefit from $2,095 to $2,170, about $75 a month, according to Patch, which drew on Associated Press reporting.
The change covers about 73 million Social Security recipients nationwide, including nearly 1.8 million in New Jersey. Here’s what you need to know.
Is It Enough?
Inflation has been the story for much of 2026. Consumer prices rose 3.7% over the year through September, with gasoline up 34.2%, shelter costs up 3.2%, and food up 2.5%, Patch reports. Some retirees say the adjustment isn’t enough.
Lorrie Ufkin, a 71-year-old retiree near Rochester, Minnesota, told the AP the increase doesn’t cover her rising health care costs, and that it “doesn’t even meet what they’re going to do for changes to Medicare.” She pointed to the end of a temporary Medicare Part D subsidy program, which she said will push up her premiums and drug costs. The Centers for Medicare & Medicaid Services, for its part, projects a modest increase for most people, Patch reports.
Jaime Jakubczak, 68, of Buffalo, New York, who returned to work after retiring at 55 to cover rising property taxes, called the 3.6% adjustment “a pittance.” AARP CEO Myechia Minter-Jordan said one in five older Americans have no retirement savings, which makes the adjustment “critically important.”
In New Jersey, where cost-of-living is among the highest in the nation, the picture becomes even more stark. New Jersey retirees are left with rising costs, which an average $75-a-month increase might not fully alleviate.
| Year | COLA % |
|---|---|
| 2015 | 1.7 |
| 2016 | 0 |
| 2017 | 0.3 |
| 2018 | 2.0 |
| 2019 | 2.8 |
| 2020 | 1.6 |
| 2021 | 1.3 |
| 2022 | 5.9 |
| 2023 | 8.7 |
| 2024 | 3.2 |
| 2025 | 2.5 |
| 2026 | 2.8 |
| 2027 | 3.6 |
Source: Social Security Administration, via AARP.
What Else Changes in 2027
The annual earnings subject to Social Security payroll taxes will rise to $192,300 in 2027, from $184,500 this year. The adjustment is paid for by payroll taxes on workers and employers, up to that limit.
The Long-Term Outlook
The adjustment doesn’t address the program’s funding problem.
According to the 2026 trustees’ report, the combined retirement and disability trust funds are projected to run out of reserves in 2034. After that, incoming revenue would cover about 83% of scheduled benefits. The retirement fund alone is projected to run out in 2032, with revenue covering about 78%. Benefits wouldn’t disappear outright—but recipients could see cuts.
With the clock ticking, Congress still hasn’t agreed on a fix.
Not the Same COLA
If you’ve seen “COLA” in New Jersey news over the past year, it was likely about something else entirely.
Retired public employees have been pushing to restore a cost-of-living adjustment to their state pensions, which was suspended in 2011. That’s a separate adjustment from Social Security’s. Read our earlier coverage for a more complete breakdown.
Social Security’s COLA, on the other hand, is automatic. For the nearly 1.8 million New Jerseyans who receive benefits, the adjustment arrives in January on their checks. Whether it keeps pace will depend on inflation, Medicare costs, and what Congress does about the trust funds.
For now, New Jersey retirees can expect to celebrate an extra $75 on their Social Security checks come January. That’s not nothing. Still, some argue it’s not enough.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
