The key facts

  • The 2027 COLA will be 3.6% — the largest increase since 2023; average boost of about $75 per month, payments starting January 2027
  • Critics: the CPI-W index does not reflect seniors' expenses, and Medicare premiums may 'eat up' part of the increase; senior poverty rose to 15.4%
  • Floqer ($1.2M ARR, $2M in funding) will open-source its AI platform in early 2027

Social Security benefits to rise 3.6% in 2027

The US Social Security Administration (SSA) announced on Wednesday that the cost-of-living adjustment (COLA) for 2027 will be 3.6%. This is the largest annual increase in four years — the previous figure in 2026 was 2.8%, and the record was an 8.7% rise in 2023. The increase will affect more than 75 million Americans: about 72 million Social Security recipients will see the boost starting January 2027, while 7.3 million Supplemental Security Income (SSI) recipients will see it on December 31, 2026. The average payment will rise by roughly $75 — to $2,170 per month. SSA Commissioner Frank Bisignano said the adjustment will 'provide greater financial stability' for 76 million Americans.

The reason — accelerating inflation amid the war in Iran

The higher increase is meant to compensate for accelerating inflation, which, according to CBS and ABC News, was partly fueled by rising fuel prices after the start of the war in Iran. The Labor Department reported that the consumer price index rose 3.7% year over year in September — a four-month high, largely due to a spike in gasoline prices. The CPI-W index, on which the COLA is based, rose 3.9% over the year. At the same time, the SSA is raising the income cap subject to the Social Security tax from $184,500 to $192,300.

Critics: the increase does not offset losses

Advocates for seniors doubt the increase is sufficient. Shannon Benton, executive director of the Senior Citizens League, noted that the COLA 'does not necessarily restore the purchasing power seniors have already lost': 'COLAs are designed to keep up with inflation, not to make up for years of falling behind.' Nancy Altman, president of Social Security Works, pointed out that 3.6% lags behind September inflation: 'People are being squeezed by prices.' According to census data, the poverty rate among seniors rose from 14.2% in 2022 to 15.4% last year. An AARP survey showed that about 76% of older Americans consider an increase of around 3.5% insufficient; AARP chief Myechia Minter-Jordan noted that one in five seniors has no retirement savings.

Debates over the calculation formula and Medicare

The COLA is calculated using the CPI-W index, which, in the view of several senior advocates, inaccurately reflects their expenses, especially healthcare. Max Richtman, president of the National Committee to Preserve Social Security and Medicare, advocates switching to CPI-E — an index for seniors; this measure is included in the Social Security Expansion Act and Social Security 2100 Act bills. CNBC notes that some experts doubt CPI-E grows significantly faster than the current index, and a switch to the chained CPI, according to an AARP analysis, 'would substantially reduce benefits over time.' Medicare premiums for 2027 have not yet been announced: according to the Medicare trustees' projection, the standard Part B premium will be $209.50 versus $202.90 in 2026. Financial advisor Tyler End warned that healthcare inflation (5.8% per year) outpaces the average COLA (2.4%), so a significant portion of the increase may go toward medical expenses.

Alarm over the fund's solvency

According to CBS News, the Social Security trust fund is projected to be depleted in six years: if lawmakers fail to agree on measures, payments could be cut by more than 20% in 2032. Myechia Minter-Jordan said that 'Americans cannot afford a cut to benefits they have earned.' Nancy Altman added that 'the future of Social Security is on the ballot this November,' including the size of annual adjustments. Notices of new benefit amounts will appear in My Social Security online accounts starting in late November; those wishing to receive notices online must sign up by November 18, while others will receive letters in December.

Startup Floqer to open-source its AI platform for B2B sales

In separate news: Floqer, a startup presenting at the Startup Battlefield competition at TechCrunch Disrupt 2026, unveiled an 'autonomous customer knowledge' platform — AI agents that automatically research potential clients for B2B sales teams, gathering data from more than 100 third-party sources and continuously updating CRM records. The company announced plans to open-source the technology in early 2027 (the timing depends on security reviews), partly due to customer demand to host data themselves. According to founders Shivam Mahajan and Zaed Islam, Floqer has surpassed $1.2 million in annual recurring revenue, grew roughly tenfold over the year, raised $2 million in pre-seed funding (investors include F7 Fund Perplexity, N49P, Tidal Venture Partners, and Perplexity co-founder Denis Yarats), and serves more than 1,000 customers, including Perplexity, Wise, and AngelList. Customers, according to the company, cut prospecting time by up to 70%.