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

With a 3.6% COLA for 2027, Social Security retirement benefit checks will go up by $75 per month, on average, the agency said.

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

TL;DR

  • Social Security and SSI benefits will see a 3.6% cost-of-living adjustment (COLA) for 2027.
  • Social Security retirement benefits will increase by an average of $75 per month.
  • Approximately 72 million Social Security recipients and 7.3 million SSI beneficiaries will receive these increases.
  • The 3.6% COLA is the largest increase since 2023, when benefits rose by 8.7%.
  • Rising Medicare Part B premiums, projected at $209.50 in 2027, and potential Medicare Part D increases may reduce the net benefit increase.
  • The COLA is calculated based on the year-over-year percentage increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the third quarter.
  • Alternative COLA measures like the chained CPI and CPI-E have been proposed but are not currently used.