Social Security 2027 Cost of Living adjustment

Social Security Announces 3.6% Cost-of-Living Adjustment for 2027

The Social Security Administration (SSA) has announced a 3.6% Cost-of-Living Adjustment (COLA) for 2027, providing increased monthly benefits to Social Security and SSI recipients.

What Does the 2027 COLA Mean?

The average retired worker benefit is expected to increase from approximately $2,095 to $2,170 per month, an increase of about $75 monthly.  Disabled workers: approximately $1,642 to $1,701 monthly. Widowed beneficiaries: approximately $1,936 to $2,005 monthly. 

When Will the Increase Take Effect?

Higher Social Security benefits begin with January 2027 payments. SSI recipients will see increased payments beginning December 31, 2026.

Additional 2027 Social Security Updates

The maximum earnings subject to Social Security tax will increase to $192,300 in 2027. The retirement earnings test threshold for individuals under full retirement age will rise to $25,560 annually.

Planning Ahead

While the COLA helps offset inflation, retirees should continue reviewing their overall retirement income strategy, including healthcare and Medicare-related expenses.

Source: Social Security Administration 2027 COLA Fact Sheet and Press Release (October 14, 2026).