2027 COLA: Social Security Benefits Will Rise 3.6% in January

Social Security and Supplemental Security Income (SSI) payments will rise 3.6% in 2027, the Social Security Administration (SSA) announced Wednesday, Oct. 14. The cost-of-living adjustment (COLA) reaches about 76 million Americans and will add roughly $75 a month — about $900 a year — to the average retired worker's benefit.

Nearly 72 million Social Security beneficiaries will see the increase starting with their January 2027 payments. About 7.3 million people who receive SSI will get their first higher payment on Dec. 31, 2026.

Social Security Commissioner Frank Bisignano said the adjustment would give beneficiaries "greater financial stability."

The 3.6% raise is up from 2.8% in 2026 and is the biggest since the 8.7% increase for 2023. It also landed in line with forecasts from AARP and The Senior Citizens League, which had projected 3.5% to 3.6%.

You don't need to do anything to receive the increase. It's applied automatically.

2027 COLA at a glance

• COLA: 3.6%
• Who gets it: Social Security retirement, survivor, and disability (SSDI) beneficiaries, plus SSI recipients
• Average retiree increase: about $75 a month ($2,095 to $2,170)
• First higher payment: January 2027 for Social Security; Dec. 31, 2026, for SSI
• Maximum SSI payment: $1,029 a month for an individual, $1,544 for a couple
• Taxable maximum: $192,300, up from $184,500
• COLA notices: online in late November; by mail in December

How much will your check go up?

Every beneficiary gets the same 3.6% increase, so the dollar amount depends on what you receive now. Here are SSA's estimates for average monthly benefits payable in January 2027:

To estimate your own raise, multiply your current monthly benefit by 0.036. A $1,500 benefit would go up about $54 a month; a $2,500 benefit would go up about $90. Your COLA notice will show the exact figure, including any Medicare premium deductions.

SSI payment amounts for 2027

The maximum federal SSI payment will rise to:

• $1,029 a month for an eligible individual (up from $994)
• $1,544 a month for an eligible couple (up from $1,491)

Those are maximums before any reduction for countable income. Many states add a supplement on top of the federal amount, and those supplements don't always rise with the COLA.

SSI resource limits are set by law and are not changing: $2,000 for an individual and $3,000 for a couple.

Watch for two SSI payments in December. Because Jan. 1, 2027, is a federal holiday, the January SSI payment will arrive early, on Thursday, Dec. 31. That means SSI recipients will receive payments on both Dec. 1 and Dec. 31, and none in January. The second December payment isn't a bonus — it's January's money, so budget accordingly.

If you receive both Social Security and SSI, the higher Social Security check counts as income for SSI purposes, which can reduce your SSI payment slightly. Check your notice to see how the two amounts combine.

What changes for SSDI recipients

SSDI benefits rise by the same 3.6%. The average disabled worker will see about $59 more a month, from $1,642 to $1,701.

The earnings limits for people receiving disability benefits are also going up. In 2027, the substantial gainful activity (SGA) threshold — the monthly amount you can generally earn from work without jeopardizing eligibility — will be:

• $1,770 a month for non-blind individuals (up from $1,690)
• $2,950 a month for blind individuals (up from $2,830)

What changes for people who are still working

Several other figures adjust each January based on wage growth:

• Taxable maximum: Social Security payroll tax applies to earnings up to $192,300 in 2027, up from $184,500. Earnings above that amount aren't subject to the 6.2% Social Security tax (the 1.45% Medicare tax has no cap).
• Payroll tax rates: Unchanged at 7.65% for employees and 15.3% for the self-employed.
• Work credits: You'll earn one credit for every $1,970 in earnings, up from $1,890. Earning $7,880 in 2027 gets you the maximum four credits for the year.
• Retirement earnings test: If you're collecting benefits before full retirement age and still working, you can earn up to $25,560 a year ($2,130 a month) in 2027 before SSA starts withholding benefits, up from $24,480. Above that limit, SSA withholds $1 for every $2 you earn.

Medicare premiums could shrink the raise

For many retirees, the COLA's real value depends on what happens to Medicare Part B premiums, which are usually deducted directly from Social Security checks. The 2027 Part B premium hasn't been announced yet. SSA says information about Medicare changes for 2027 will be posted on medicare.gov.

A federal "hold harmless" rule protects most beneficiaries from seeing their net Social Security payment fall because of a Part B premium increase, but a premium hike can still eat into the raise you see. Your COLA notice will show your 2027 benefit both before and after Medicare deductions.

Veterans and federal retirees

VA benefits: VA disability compensation, Dependency and Indemnity Compensation (DIC), and VA pension generally increase by the same percentage as the Social Security COLA. The increase typically takes effect Dec. 1, and because VA pays a month behind, veterans usually see it in their payment around the start of January. VA will publish its official 2027 compensation rate tables once the increase is finalized.

Federal retirees: Retirees under the Civil Service Retirement System (CSRS) will get the full 3.6% on their annuities. Most retirees under the Federal Employees Retirement System (FERS) will get a smaller 2.6% adjustment, because FERS reduces the COLA by one percentage point when inflation tops 3%.

When and how you'll get your COLA notice

• Online: If you have a my Social Security account, your COLA notice will appear in your account's Message Center starting in late November. You can also sign up for text or email alerts when it arrives.
• Create an account by Nov. 18: SSA says that's the deadline to set up a my Social Security account if you want to view your notice online.
• By mail: If you're not enrolled in paperless notices, SSA will mail your notice in December.

How the COLA is calculated

By law, the COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. SSA compares the average CPI-W for July, August, and September with the same three months a year earlier. The 2027 figure was released on Oct. 14, right after the September inflation data came out.

Recent Social Security COLAs

The bottom line

The 2027 COLA is a meaningful bump after a couple of smaller years, but it's designed to keep pace with prices you've already been paying, not to get ahead of them. Log in to my Social Security in late November to see your exact new amount, and keep an eye out for the 2027 Medicare Part B premium announcement, which will determine how much of the raise actually lands in your bank account.