The Social Security Administration disclosed that benefits will increase by 3.6% in 2027, marking the largest adjustment since 2023. The cost-of-living adjustment, or COLA, applies to both Social Security and Supplemental Security Income recipients. Approximately 72 million Social Security beneficiaries will receive higher payments beginning in January, while about 7.3 million SSI beneficiaries will see increased payments starting December 31. Social Security Commissioner Frank Bisignano stated the adjustment would provide greater financial stability for recipients.
The 3.6% increase aligns with projections released in the previous month that forecasted a boost between 3.5% and 3.6%. This represents a significant rise compared to the 2.8% adjustment implemented in 2026, though it remains below the 8.7% increase granted in 2023, which was the highest in four decades and came in response to elevated inflation levels. The adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, which tracks price changes for goods and services purchased by urban households.
Recent data released Wednesday indicated that consumer prices are accelerating, with the Consumer Price Index rising 3.7% over the preceding 12 months, driven partly by increased gas prices. However, advocacy groups noted concerns about the adequacy of the adjustment. An AARP survey found that 76% of respondents indicated a 3.5% COLA would be insufficient, with approximately 40% of Social Security beneficiaries ages 65 and older relying on the program for at least half their income.
Beneficiaries can estimate their benefit increases by multiplying their current monthly payment by 3.6%. The Social Security Administration will distribute notices detailing 2027 benefits and payment specifics, with online access available through My Social Security accounts beginning in late November. Those preferring mailed notices will receive statements in December. Medicare Part B premiums are projected to increase to $209.50 in 2027 from $202.90 in 2026, potentially affecting net benefit payments for some recipients.
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