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- The cost-of-living adjustment, or COLA, provides an annual inflation adjustment to both Social Security and Supplemental Security Income, or SSI, benefits.
- With a 3.6% COLA for 2027, Social Security retirement benefits will go up by $75 per month, on average, the agency said.
- Around 72 million Americans will see the benefit increases in January, according to SSA.
- The 3.6% COLA for 2027 is the largest increase to benefits since 2023.
A shopper looks at a beverage display June 4, 2026 at the Market 32 Supermarket in South Burlington, Vermont. Robert Nickelsberg | Getty Images
The Social Security cost-of-living adjustment will be 3.6% in 2027, the Social Security Administration said on Wednesday.
The cost-of-living adjustment, or COLA, provides an annual inflation adjustment to both Social Security and Supplemental Security Income, or SSI, benefits.
Social Security retirement benefits will increase by $75 per month on average, the agency said.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Social Security Commissioner Frank Bisignano said in a statement.
Around 72 million Social Security recipients will see the benefit increases in January, according to SSA. About 7.3 million SSI beneficiaries will receive higher payments starting Dec. 31, the agency said.
The 3.6% COLA for 2027 is in line with Social Security experts’ projections, which last month forecast an increase of 3.5% to 3.6%.
Bigger COLA comes amid higher inflation
The 3.6% COLA for 2027 is the largest increase to benefits since 2023. That year, beneficiaries received an 8.7% benefit boost — the highest in four decades — in response to rising inflation.
The 2026 COLA was 2.8%.
New government inflation data released on Wednesday shows consumer price increases are accelerating. The consumer price index rose 3.7% over the past 12 months, as gas prices jumped.
About 40% of Social Security beneficiaries ages 65 and over rely on the program for at least half of their income, according to the AARP. A recent AARP survey found 76% of respondents said a 3.5% COLA would not be enough.
The Social Security COLA is “critically important” because it helps millions of Americans cover rising everyday costs, including groceries, routine bills and health care, AARP CEO Myechia Minter-Jordan said in a statement.
“There’s a lot on the line financially right now for older Americans: one in five have no retirement savings, and more people feel financially insecure this year than last,” Minter-Jordan said.
This is a developing story. Please refresh for updates.
