WASHINGTON — Social Security and Supplemental Security Income benefits will rise 3.6% in 2027, increasing the average retired worker’s payment by about $75 a month, the Social Security Administration announced Wednesday.
Nearly 72 million Social Security beneficiaries will receive the cost-of-living adjustment beginning with January 2027 payments. About 7.3 million people who receive SSI will see the increase starting Dec. 31, 2026; some people receive both programs.
According to the agency’s 2027 COLA fact sheet, the estimated average monthly benefit for retired workers will increase from $2,095 to $2,170. The average payment for all disabled workers will rise from $1,642 to $1,701, while the average benefit for an older widow or widower living alone will move from $1,936 to $2,005.
The maximum federal SSI payment will increase from $994 to $1,029 a month for an eligible individual and from $1,491 to $1,544 for an eligible couple. The adjustment also raises the amount of annual earnings subject to Social Security payroll taxes from $184,500 in 2026 to $192,300 in 2027.
The annual COLA is calculated from changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers between the third quarters of consecutive years. The 3.6% increase is larger than the 2.8% adjustment beneficiaries received for 2026.
For many retirees and people with disabilities, however, the headline increase will not equal the amount added to their bank accounts. Medicare premiums and other deductions can reduce the net gain. The Social Security Administration said 2027 Medicare premium information will be available later this year.
The Associated Press reported that the adjustment arrives as older adults continue to face pressure from food, housing and health-care costs. September consumer prices were 3.7% higher than a year earlier, slightly above the new COLA.
Beneficiaries with a personal my Social Security account can view their individualized COLA notice online beginning in late November. The agency said people who want online access must create an account and opt into paperless notices by Nov. 18. Those who do not enroll will receive a paper notice by mail in December.
The official Social Security announcement includes the payment schedule and links to the agency’s COLA resources. Beneficiaries should rely on SSA.gov or their official notice for their exact new amount and should be cautious of calls or messages seeking personal information in exchange for the increase.
