The Social Security Administration announced that beneficiaries will receive a 3.6% cost-of-living adjustment in 2027, marking the largest increase since 2023. The adjustment will provide Social Security retirement benefits with an average monthly increase of $75, according to agency officials. Approximately 72 million Social Security recipients will see the benefit increases beginning in January, while about 7.3 million Supplemental Security Income beneficiaries will receive higher payments starting December 31.
Social Security Commissioner Frank Bisignano stated that the adjustment will provide greater financial stability to those affected. The 3.6% figure aligns with projections from Social Security experts, who had forecast an increase in that range. This adjustment represents a significant rise compared to the 2.8% COLA implemented in 2026, though it remains substantially lower than the 8.7% boost beneficiaries received in 2023, which was the highest in four decades.
Wednesday’s announcement coincided with the release of new government inflation data indicating that consumer price increases are accelerating. The Consumer Price Index rose 3.7% over the past 12 months, with gas prices contributing significantly to the increase. The CPI-W, the specific inflation measure used to calculate Social Security adjustments, increased 3.9% over the same period.
Beneficiaries should note that increases to Medicare premiums may offset some benefit gains. Standard Medicare Part B monthly premiums are projected to rise to $209.50 in 2027 from $202.90 in 2026, and these costs may be deducted directly from Social Security checks. The Social Security Administration will provide beneficiaries with detailed notices about their 2027 benefits, available online through My Social Security accounts starting in late November for those who have enrolled in paperless notices, or via mail in December for others.
Advocacy organizations have noted concerns about benefit adequacy. According to AARP research, approximately 40% of Social Security beneficiaries ages 65 and older rely on the program for at least half their income, and a recent survey found that 76% of respondents indicated a 3.5% adjustment would be insufficient for their needs.
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