INCREDIBLE

OFFER!

$200 Bonus + Up to 5% Cash Back

Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening.

Plus, enjoy 0% intro APR for 15 months on both purchases and balance transfers (then 18.24% - 27.74% Variable APR).

APPLY NOW

Member FDIC

A Bigger Social Security Raise Is Likely Coming in 2027 - Here's What to Do Now

Your next financial win doesn't have to wait.

By Maurie Backman , Edited by Laura Hohenstein

Updated Aug. 11, 2026

Add Us On Google

Social Security is one of the most important senior benefits available to retirees today. And many Social Security recipients rely on the program's annual cost-of-living adjustments, or COLAs, to keep up with their rising costs.

Social Security COLAs are based on third quarter inflation data. For this reason, it's too soon to know what next year's increase would be officially.

The non-partisan Senior Citizens League says the 2027 COLA could be 3.8%. Independent Social Security analyst Mary Johnson says next year's COLA could be 3.7%, which is pretty consistent with the aforementioned estimate. But either way, it's looking like the upcoming COLA could be much bigger than 2026's 2.8% increase.

While that's good news for retirees, if you're on Social Security, you don't have to wait until 2027 to improve your financial picture. Here are a few things you could do in the coming months.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

Go back to work

You might assume that working while on Social Security is not allowed. Although it's actually not a problem.

Once you've reached full retirement age (FRA), you could earn any amount of money without it having a negative impact on your Social Security checks. If you're getting benefits prior to FRA, you'll be subject to an earnings test. And exceeding its limits could mean having some Social Security withheld temporarily.

But if you take a part-time job, your wages might fall below the earnings test thresholds, which are $24,480 for people who won't reach FRA this year or $65,160 for people who would meet it.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Start a business

After a lifetime of having to answer to a boss, you may be tired of that routine. If that's the case, another great way to boost your income ahead of your upcoming Social Security COLA is to start a business and become your own boss.

That business could be something you enjoy doing, like creating artwork or furniture. It could also be something you're willing to do, like clean houses or tutor. While the same earnings test thresholds may apply to income you earn from a business you start, this gives you an opportunity to make that money on your own schedule without having to feel like you're reporting to a manager once again.

Rent out part of your home

If you own a home in retirement that has a finished garage, basement, or other separate area, finding a tenant to occupy that space may be an easy way to boost your income.

Don't want to share a roof with someone else? Another option is to potentially rent out your home during periods you won't be using it.

For example, you could live in a trendy city and tend to go stay with your grown kids one weekend a month in another state. If you won't be using your home during those times, why not try to find short-term renters? It could be a great way to generate income without having to deal with a permanent tenant.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up to 25% off your AARP membership, making it just $15 the first year with auto-renewal.

Choose more income-producing investments

If Social Security is your main retirement income source, you may not have a very large investment portfolio. But no matter what your savings look like, it's important to make sure they're producing income steadily.

Take a look at how much income your portfolio produces for you on a monthly and annual basis. If it's not a lot, you may want to look at loading up on dividend stocks or ETFs and bonds with more generous yields.

If you have money outside of a tax-advantaged retirement account you're looking to invest, municipal bonds could also be a good choice for you. The nice thing about them is that not only do they pay interest, but that interest could be exempt from federal taxes. And if you buy municipal bonds issued by the state you reside in, you could avoid state taxes on your interest payments as well.

Bottom line

If you're living on just Social Security, the upcoming COLA may be extremely important to your financial picture. But that raise won't arrive until January of 2027. And if you're having a hard time making ends meet now, you don't want to wait until the start of the new year to get relief.

The moves above could all help put more cash in your pocket right now so you're able to more easily cover your bills. Try your best to reduce your expenses if your current Social Security checks aren't cutting it.

Even if next year's COLA is generous, it would come at the cost of higher inflation this summer. So financially, that may not be such a win. If you want your finances to improve, you may need to take matters into your own hands rather than just wait for your Social Security COLA to arrive.

More from FinanceBuzz: