Social Security Announces 3.6 Percent COLA for 2027, Adding About 75 Dollars Per Month for Average Retiree
The Social Security Administration announced on October 14 that benefits will increase by 3.6 percent in 2027, the largest cost-of-living adjustment since 2023. The increase adds roughly 75 dollars per month to the average retiree's check and takes effect in January 2027.
The Social Security Administration announced on October 14, 2026, that Social Security benefits and Supplemental Security Income payments will increase by 3.6 percent in 2027. The adjustment affects approximately 76 million Americans and is the largest cost-of-living increase since 2023.
For the average retiree, the 3.6 percent increase translates to about 75 dollars more per month. The adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, measuring inflation from the third quarter of 2025 through the third quarter of 2026.
The increase takes effect in January 2027 for Social Security beneficiaries. Supplemental Security Income recipients will see the higher payments starting December 31, 2026.
The maximum amount of earnings subject to Social Security tax will also rise, from 184,500 dollars in 2026 to 192,300 dollars in 2027. For workers under full retirement age, the annual earnings limit increases to 25,560 dollars. For those reaching full retirement age in 2027, the limit rises to 67,920 dollars.
The 3.6 percent COLA also applies to VA disability compensation, though that adjustment requires congressional approval. The Veterans' Compensation Cost-of-Living Adjustment Act of 2026 was pending as of mid-October.
Beneficiaries can view their specific COLA notices through the Message Center of their "my Social Security" online account. The SSA encouraged recipients to create or update their accounts by November 18 to access notices digitally. Paper notices will be mailed in December for those not enrolled in paperless notifications.
