Social Security benefits will increase by 3.6% in January 2027, providing the average retiree with an additional $75 per month.
About 76 million Americans will benefit from the increase, including retirees, people with disabilities, and Supplemental Security Income recipients.
Beneficiaries will learn their exact payment amounts beginning in late November, but higher Medicare premiums could offset some of the increase.
As expected, the 2027 Social Security cost-of-living adjustment (COLA) will be significantly more than last year.
The Social Security Administration (SSA) has announced that benefits will increase by 3.6% in 2027, providing the average retiree with an additional $75 per month, or about $900 annually.
The COLA is significantly larger than the 2.8% increase beneficiaries received in 2026 and is intended to help offset rising consumer prices.
Nearly 72 million people receiving Social Security retirement, survivor, and disability benefits will receive the increase beginning in January. Another 7.3 million people receiving Supplemental Security Income (SSI) will see their payments rise beginning December 31, 2026.
Because some people receive both types of benefits, the SSA estimates that approximately 76 million Americans will be affected.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” said Social Security Commissioner Frank J. Bisignano.
How much will benefits increase?
The actual dollar increase depends on a person's current benefit amount. Someone receiving $1,500 per month will get an additional $54, bringing the monthly payment to $1,554.
A beneficiary currently receiving $2,000 will see a $72 increase, raising the monthly payment to $2,072. Someone receiving $2,500 will get an additional $90 per month. However, those figures are before deductions, including Medicare premiums.
The standard Medicare Part B premium rose to $202.90 in 2026, and the government has not yet announced the premium for 2027. Any additional increase could reduce the amount of the Social Security raise that beneficiaries actually receive.
How the increase is calculated
Social Security's annual COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation.
The government compares inflation during July, August, and September with the same period a year earlier to determine the following year's adjustment.
While the increase is designed to protect purchasing power, some advocates for older Americans argue that the formula doesn't adequately reflect retirees' expenses, particularly healthcare costs.
The SSA said beneficiaries with personal My Social Security accounts can view their individual COLA notices online beginning in late November. Those who want electronic notices must enroll in paperless notifications by November 18. Beneficiaries who haven't enrolled will receive their notices by mail in December.