A projected increase in Social Security benefits for 2027 could put more money into retirees’ pockets. However, for millions of Americans, that larger check may also lead to higher taxes at both the federal and state levels.

Retirees have a lot of things to spend their money on, from travel and spoiling the grandkids to covering the cost of medical care as they age. Unfortunately, taxes may be among the expenses seniors have to cover as well.

If the current trend continues, an above-average benefit boost is likely.

Retirees may welcome a larger Social Security increase in 2027, but experts warn the boost could add new pressure to the program’s long-term finances.

A 3.9% Social Security COLA for 2027 sounds like good news for retirees. After Medicare premiums and rising living costs, the real boost may be more modest.

While the official adjustment will not be announced until October, analysts are already raising their projections.

A nonpartisan senior group projects a higher Social Security COLA for 2027 but warns that inflation is still squeezing older Americans.

When the Social Security Administration announced last year that benefits would get a 2.8% cost-of-living adjustment, or COLA, in 2026, many retirees were disappointed. And many are holding out hope for a more generous COLA in 2027.

Although the 2027 cost-of-living adjustment won't be announced until October, analysts have already raised their projections.

Social Security beneficiaries may see a larger cost of living adjustment in 2027, with estimates predicting a 3.9% COLA amid rising inflation concerns.

Social Security's projected insolvency moved up to 2032, and three trends building right now could shorten that timeline further. Here's what to watch.