Social Security COLA Will Be 3.6% in 2027, Adding $75 a Month on Average
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, the biggest since 2023, as new data shows inflation accelerating.
The Social Security Administration has confirmed that benefits will rise 3.6% in 2027. The COLA is the yearly inflation adjustment applied to both Social Security and Supplemental Security Income (SSI) benefits. It is the largest increase since 2023, when beneficiaries received an 8.7% boost, the highest in four decades.
The figure matches what experts projected. Last month, Social Security experts forecast an increase of 3.5% to 3.6%.
What we know
According to the agency, the average Social Security retirement benefit will go up by $75 per month, from an estimated $2,095 to $2,170 in January 2027, based on SSA's 2027 fact sheet. Around 72 million Social Security recipients will see higher payments in January, while about 7.3 million SSI beneficiaries will see theirs starting Dec. 31.
Social Security Commissioner Frank Bisignano said the agency will put the adjustment in place for 76 million Americans, "giving them greater financial stability."
Why inflation matters
The announcement came as new government data showed consumer prices accelerating. The consumer price index rose 3.7% over the past 12 months, as gas prices jumped. That is slightly above the new COLA.
AARP says about 40% of beneficiaries aged 65 and over rely on Social Security for at least half of their income. In a recent AARP survey, 76% of respondents said a 3.5% COLA would not be enough. AARP CEO Myechia Minter-Jordan called the COLA "critically important" for covering groceries, bills and health care. She noted that one in five older Americans have no retirement savings.
Other 2027 changes from SSA
SSA's 2027 fact sheet also lists these changes:
- Taxable maximum: earnings subject to the Social Security tax rise to $192,300, from $184,500.
- Earnings test, under full retirement age: $25,560 a year ($2,130 a month); SSA withholds $1 for every $2 earned above it.
- Earnings test, the year you reach full retirement age: $67,920 a year; $1 is withheld for every $3 above it.
- SSI federal payment: $1,029 a month for an individual and $1,544 for a couple.
- Maximum benefit at full retirement age: $4,188 a month, up from $4,152.
Medicare premiums could eat into the raise
Part of the increase may be offset by Medicare costs. Medicare trustees project the standard Part B premium at $209.50 a month in 2027, up from $202.90 in 2026. Higher earners may pay extra surcharges known as IRMAAs. Part D drug plans may see modest premium increases, according to a KFF analysis. These premiums can be deducted straight from benefit checks.
What it means for you
To estimate your raise, multiply your current monthly benefit by 0.036. A $1,500 benefit, for example, would rise by about $54. Remember that Medicare deductions can shrink the net change.
The SSA will send notices with your exact 2027 payment dates, amounts and any deductions. If you have a My Social Security account, you can see yours online from late November. To get the notice online, create an account and opt into paperless notices by Nov. 18. Others will get a mailed statement in December.
Also read US Inflation Climbs to 3.7% in September, Above Forecasts, as Gasoline Surges
Quick answers
How do I calculate my 2027 Social Security increase?
Multiply your current monthly benefit by 3.6% (0.036) and add the result to your benefit. Medicare premium changes may reduce the net amount you receive.
When will I find out my exact new amount?
Online account holders can see their COLA notice starting in late November. Those who haven't signed up for online notices will get a mailed statement in December.
Does the COLA apply to SSI?
Yes. The COLA covers both Social Security and SSI. About 7.3 million SSI recipients will receive higher payments starting Dec. 31, the agency said.
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