Key facts
- Social Security retirement benefits will increase by 3.6% in January 2027.
- The 3.6% cost-of-living adjustment will apply to approximately 76 million Americans receiving Social Security or Supplemental Security Income (SSI) payments.
- The annual adjustment is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
- The maximum annual earnings subject to Social Security payroll taxes will increase to $192,300 in 2027.
Retirees and other beneficiaries of Social Security and Supplemental Security Income (SSI) will see their payments increase by 3.6% starting in January 2027, the Social Security Administration announced. This cost-of-living adjustment (COLA) is expected to add an average of $75 per month to checks, totaling an estimated annual boost of $900 for recipients. The increase is tied to the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Despite being the largest COLA in four years, advocates like Shannon Benton, Executive Director of the Senior Citizens League, and Myechia Minter-Jordan, CEO of AARP, expressed concerns that the adjustment is insufficient to cover rising household expenses and inflation, particularly for those heavily reliant on Social Security. Surveys indicate a majority of adults aged 50 and older believe current COLA levels do not keep pace with increased costs.
In addition to the benefit increase, the maximum amount of annual earnings subject to Social Security payroll taxes is set to rise to $192,300 in 2027, up from $184,500 in 2026. Beneficiaries will be able to view their updated payment amounts online starting in late November.