Key facts
- Social Security recipients will receive a 3.6% cost-of-living adjustment (COLA) in 2027.
- The COLA will increase average monthly benefits by $75.
- Nearly 72 million Social Security beneficiaries will receive higher payments starting January 2027.
- Approximately 7.3 million Supplemental Security Income recipients will see increased payments starting December 31, 2026.
- Consumer prices rose 3.7% annually in September, up from 3.4% in August.
Social Security recipients are set to receive a 3.6% cost-of-living adjustment (COLA) in 2027, which will increase average monthly benefits by $75. This adjustment will impact nearly 72 million Social Security beneficiaries starting in January 2027, and approximately 7.3 million Supplemental Security Income (SSI) recipients will see their payments rise from December 31, 2026.
The Social Security Administration (SSA) announced the COLA as consumer prices continued to climb. The annual inflation rate stood at 3.7% in September, up from 3.4% in August, according to the Bureau of Labor Statistics. This marks the highest inflation rate ahead of a midterm election since 1990, excluding the pandemic period.
Despite the COLA, advocates like Shannon Benton, director of the advocacy group Senior Citizens League, note that these adjustments often fall short of covering escalating expenses for seniors, particularly in areas like healthcare, housing, and prescription drugs. Benton stated that while the adjustment offers some relief, it won't fully compensate for the rising costs experienced over the decade.
A recent Pew Research survey indicated that 44% of Americans struggled to afford basic necessities in the past year, with 61% believing there is excessive economic inequality in the U.S. This sentiment was more pronounced among Democrats and Democratic-leaning independents.