Every October, the Social Security Administration announces how much benefits will rise in the coming year to keep up with inflation. For 2027, the cost-of-living adjustment, or COLA, is 3.6%. It applies to retirement, survivor and disability benefits, and to Supplemental Security Income (SSI).
That is larger than the 2.8% increase for 2026 and the 2.5% increase for 2025. Here is what the new figure means in dollars, when you will see it and what could make your actual deposit a little different.
How much more you could receive
The COLA is a percentage of the benefit you already receive, so the dollar increase depends on your current amount. The Social Security Administration's estimates for average monthly benefits look like this:
| Who receives the benefit | Before the increase | After the increase |
|---|---|---|
| All retired workers | $2,095 | $2,170 |
| Married couple, both receiving benefits | $3,238 | $3,355 |
| Widow or widower living alone | $1,936 | $2,005 |
| All disabled workers | $1,642 | $1,701 |
To estimate your own increase, multiply your current monthly benefit before deductions by 0.036. For example, a person receiving $1,800 a month would see about $64.80 more, for a new benefit of about $1,864.80. Social Security rounds benefits down to the nearest dime and then pays the result in whole dollars, so your official figure may differ by a few cents.
When the increase arrives
- Social Security benefits: The 3.6% increase begins with the benefits paid in January 2027. Most people are paid on the second, third or fourth Wednesday of the month, depending on their birth date.
- SSI payments: The new SSI amount begins with the payment dated December 31, 2026, because January 1 is a holiday. The federal SSI payment rises to $1,029 a month for an individual and $1,544 for a couple.
You do not need to apply or do anything to receive the increase. It is automatic.
Why your deposit may rise by less
If you are enrolled in Medicare Part B, the monthly premium is usually deducted from your Social Security payment. The standard Part B premium is $202.90 in 2026. The 2027 premium is usually announced in November. The Medicare trustees have projected about $209.50 for 2027, but the official amount may differ.
When the new premium is taken out of your larger benefit, the change in your deposit is the COLA minus any premium increase. A few other deductions can also change in January:
- Part D or Medicare Advantage premiums you chose to have deducted from your benefit.
- Income-related charges (IRMAA) for people with higher incomes, which are based on the tax return you filed two years earlier.
- Federal tax withholding you asked Social Security to take out.
How the COLA is calculated
The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W. Social Security compares the average CPI-W for July, August and September with the same three months a year earlier. The percentage rise between the two averages becomes the COLA.
Because the CPI-W tracks the spending of working households, some advocates argue it does not fully reflect costs that weigh more heavily on older adults, such as health care and housing. Any change to the formula would require action by Congress.
Other figures that change in 2027
The COLA announcement also updates several figures that matter if you are still working or planning your retirement:
- Earnings test: If you are younger than full retirement age all year, Social Security withholds $1 for every $2 you earn above $25,560. In the year you reach full retirement age, the limit is $67,920, and $1 is withheld for every $3 above it, counting only earnings before the month you reach that age.
- Maximum taxable earnings: Social Security payroll tax applies to wages up to $192,300 in 2027, up from $184,500.
- Work credits: You earn one credit for each $1,970 of earnings, up to four credits a year.
- Maximum benefit at full retirement age: $4,188 a month for a worker retiring at full retirement age in 2027.
How to find your new amount
Social Security mails a COLA notice to beneficiaries in December. If you have a my Social Security account, you can usually see the notice in the account's Message Center before the paper letter arrives. The notice shows your new benefit, your Medicare premium deduction and the amount you will actually be paid.
Keep the notice with your financial papers. You may need it to show your income when you apply for programs such as Extra Help with prescription costs, the Medicare Savings Programs or property tax relief.
What to do next
- Check your notice in December and compare the new deposit with your current one.
- Update your monthly budget for January, especially if your Medicare premium or tax withholding changes.
- If your income or Medicare costs feel out of reach, read our guides to Medicare Savings Programs and Extra Help with prescription costs.
