It is official. The Social Security Administration (SSA) confirmed that Social Security and Supplemental Security Income (SSI) benefits will increase by 3.6% in 2027. The cost-of-living adjustment (COLA) will reach about 76 million Americans and is the largest annual raise since 2023, up from the 2.8% increase that took effect in 2026.
For the average retiree, the change means roughly $75 more per month starting in January 2027, according to the agency.
How much your check will increase
The SSA published its estimates of average monthly benefits before and after the 3.6% COLA. These are the figures for January 2027:
- All retired workers: from $2,095 to $2,170 a month.
- Aged couple, both receiving benefits: from $3,238 to $3,355.
- Aged widow or widower living alone: from $1,936 to $2,005.
- All disabled workers: from $1,642 to $1,701.
To estimate your own increase, multiply your current monthly benefit by 0.036. A retiree who receives $1,800 a month, for example, would see an increase of about $65, bringing the check to roughly $1,865 before any Medicare deductions.
SSI payments also go up
About 7.3 million people who receive SSI will also benefit. The maximum federal SSI payment rises from $994 to $1,029 a month for an individual and from $1,491 to $1,544 for an eligible couple. Some states pay an additional supplement on top of these amounts.
When the increase arrives
The timing depends on the type of benefit:
- Social Security beneficiaries (nearly 72 million people) will see the higher amount in payments made starting in January 2027.
- SSI recipients will see it first on December 31, 2026, when the January SSI payment is deposited early because January 1 is a federal holiday.
How the COLA is calculated
The annual adjustment is set by law. The SSA compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September of the current year with the same period of the previous year. The percentage increase between those two averages becomes the COLA. The goal is to help benefits keep pace with inflation, so the purchasing power of retirees, people with disabilities and survivors does not erode over time.
Other changes for 2027
The COLA announcement came with several other updates that affect workers and beneficiaries:
- Maximum taxable earnings: rises from $184,500 to $192,300.
- Earnings test for those under full retirement age: $25,560 a year ($1 withheld for every $2 above the limit).
- Earnings test in the year you reach full retirement age: $67,920 ($1 withheld for every $3 above the limit).
- One work credit: requires $1,970 in earnings, up from $1,890.
- Maximum benefit at full retirement age: $4,188 a month.
Watch for Medicare Part B
Many retirees have their Medicare Part B premium deducted directly from their Social Security check. The premium for 2027 is set separately by the Centers for Medicare & Medicaid Services, and any increase will reduce part of the net gain from the COLA. That is why the amount that actually lands in your bank account may be smaller than the 3.6% headline suggests.
How to see your new benefit amount
The SSA will post COLA notices online in the Message Center of each my Social Security account starting in late November. To view yours online, you need to create an account by November 18, 2026. Beneficiaries who have not opted out of paper notices will receive a letter by mail in December.
Official source: Social Security Administration – Social Security Announces 3.6 Percent Benefit Increase for 2027 and SSA 2027 COLA Fact Sheet.