2027 Social Security COLA: 3.6 Percent Benefit Increase

Author: The United States Social Security Administration
Published: 14 Oct 2026
Publication Type: Announcement

Table of Contents:
Synopsis - Definition - Overview - FAQs - Insights, Updates - Related Content

Synopsis

This report covers the Social Security Administration’s announcement of a 3.6 percent cost-of-living adjustment for 2027. The increase applies to Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI), and it raises the average retirement benefit by about $75 a month. Nearly 72 million Social Security beneficiaries will see higher payments starting in January 2027. About 7.3 million SSI recipients will get their increased payments on December 31, 2026. Some people receive both benefits, so about 76 million Americans are affected in total. By law, the adjustment follows the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is measured by the Bureau of Labor Statistics. This makes it a formula-based figure rather than a discretionary one. The update matters most to retirees, seniors on fixed incomes, people with disabilities, and surviving family members who rely on these monthly checks for rent, food, utilities, and medical costs. Because it comes straight from the agency that pays the benefits, it gives readers a reliable number to plan their 2027 household budget around.*

At a Glance

• 1 - People not enrolled in paperless notices will get their COLA notice by mail in December.
• 2 - Medicare enrollees can see their 2027 premium amount in the my Social Security Message Center starting in late November.
• 3 - To see the COLA notice online, people without a personal my Social Security account must create one and enroll in paperless notices by November 18.
• 4 - The new COLA notice is a simplified one-page letter written in plain, personalized language. It lists exact dates and dollar amounts for the new benefit and any deductions.

Topic Definition

Cost-of-Living Adjustment (COLA)

A Cost-of-Living Adjustment, or COLA, is an annual increase in Social Security and Supplemental Security Income payments that helps benefits keep pace with inflation. Under the Social Security Act, the adjustment is calculated automatically from the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. The average CPI-W for July, August, and September is compared with the same three months of the previous year. If prices have gone up, benefits rise by that percentage starting in January. If prices have not gone up, benefits stay the same. Beneficiaries do not need to apply to receive a COLA.

Overview

Social Security Announces 3.6 Percent Benefit Increase for 2027

The Social Security Administration (SSA) on 14 October, 2026, announced a 3.6 percent benefit increase for 2027. Social Security benefits include Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI). On average, Social Security retirement benefits will increase by $75 per month.

Nearly 72 million Social Security beneficiaries will see a 3.6 percent cost-of-living adjustment (COLA) beginning in January 2027. Increased payments to about 7.3 million people receiving SSI will begin on December 31, 2026. (Note: Some people receive both Social Security benefits and SSI).

"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," said Commissioner Frank J. Bisignano. "Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."

Individuals with personal my Social Security accounts can view their COLA notice online starting in late November-up to three weeks earlier than receiving a paper notice in the mail. Account holders can also choose to receive text or email alerts when a new message, including their COLA notice, is available in their personal my Social Security account's Message Center. Individuals who do not have a personal account will need to create one and enroll in paperless notices by November 18 to see their COLA notice online. Create an account today at www.ssa.gov/myaccount.

Table 1 - Tax Rate

Table 2 - Maximum Taxable Earnings, Quarter of Coverage, Retirement Earnings Test

Table 3 - Disability Thresholds, Maximum Benefit, SSI and Average Monthly Benefits

Individuals who have not enrolled in paperless notices in my Social Security will receive their COLA notice by mail in December.

Social Security beneficiaries will receive a simplified, one-page COLA notice, which uses plain and personalized language, and provides exact dates and dollar amounts of an individual's new benefit amount and any deductions.

Information about Medicare changes for 2027 will be available at www.medicare.gov For Medicare enrollees, the 2027 premium amount will be available via my Social Security Message Center starting in late November. Individuals who have not opted to receive messages online will receive their COLA notice by mail in December.

The Social Security Act provides for how the COLA is calculated. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor's Bureau of Labor Statistics.

For additional information, visit www.ssa.gov/cola/

For more information about Social Security's services, visit www.ssa.gov

U.S. Social Security Payment Dates For 2026: Complete 2026 U.S. Social Security (SSA) payment schedule dates for retirement, disability, SSI benefits, and details on 2.8% COLA increase for recipients.

Frequently Asked Questions

NOTE: Researched FAQs by Disabled World (DW)

Do I need to apply to receive the 2027 Social Security COLA?

No. The cost-of-living adjustment is applied automatically to all eligible Social Security and SSI payments, so beneficiaries do not need to file any forms or contact the agency to receive it.

Why will SSI recipients receive their January 2027 payment on December 31, 2026?

SSI is normally paid on the first day of the month, but when that day falls on a weekend or a federal holiday such as New Year’s Day, the payment is sent on the business day before it.

How do Medicare premiums affect the size of my COLA increase?

Medicare Part B premiums are usually deducted directly from Social Security benefits, so a premium increase can reduce the net gain from the COLA. A hold harmless rule protects most beneficiaries from seeing their net payment go down because of a premium increase.

Which months of inflation data are used to calculate the COLA?

The COLA compares the average CPI-W for July, August, and September of the current year with the average for the same three months of the prior year, and the percentage increase becomes the new adjustment.

Can Social Security benefits go down if inflation falls?

No. If the CPI-W does not increase from one year to the next, there is no COLA for that year, but benefit amounts are not reduced.

Is the COLA increase subject to federal income tax?

The COLA is part of your regular benefit, so it is taxed the same way. Up to 85 percent of Social Security benefits may be taxable depending on combined income, while SSI payments are not taxable.

Could a higher Social Security payment affect other assistance programs?

Possibly. Some means tested programs, such as SNAP, housing assistance, and certain Medicaid categories, count Social Security income, so a higher benefit can change eligibility or benefit levels. Beneficiaries should report the new amount to those programs when asked.

When will Social Security retirement payments with the new COLA arrive in January 2027?

Most beneficiaries are paid on the second, third, or fourth Wednesday of the month based on their birth date, while people who started benefits before May 1997 or who receive both Social Security and SSI are generally paid on the third of the month.

Insights, Analysis, and Developments

Editorial Note: A 3.6 percent raise sounds simple, but the amount that actually reaches a bank account depends on what comes out first. For most retirees the largest deduction is the Medicare Part B premium, which often goes up in the same year. That is why the 2027 premium figure due in late November matters as much as the COLA itself. The formula also deserves a closer look. The CPI-W tracks spending by working households rather than older adults, and advocates for seniors have long argued that it underweights costs such as health care and housing, where retirees spend a larger share of their income. Anyone on a fixed income, especially people with disabilities and older adults living alone, should read their personalized notice carefully when it arrives and compare the net payment with their actual monthly bills, instead of assuming the full percentage will cover rising prices.*

Attribution/Source(s): This quality-reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by The United States Social Security Administration and published on 14 Oct 2026, this content may have been edited for style, clarity, or brevity.

* Editorial additions by Ian C. Langtree.