The Social Security Administration confirmed a 3.6% cost-of-living adjustment for the coming year, marking the largest increase to benefits since 2023. The adjustment will raise average Social Security retirement benefits by $75 per month and affect approximately 76 million recipients when payments increase in January. An additional 7.3 million Supplemental Security Income beneficiaries will receive higher payments starting December 31.
The 3.6% figure aligns with projections issued by Social Security experts last month, which had anticipated an increase between 3.5% and 3.6%. This adjustment is substantially higher than the previous year’s 2.8% increase but remains lower than the 8.7% benefit boost provided in 2023, which represented the highest adjustment in four decades during a period of elevated inflation.
The announcement comes as new government inflation data released the same day indicated accelerating consumer price increases, with the consumer price index rising 3.7% over the preceding 12 months. The COLA calculation is determined by measuring changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of the prior year to the third quarter of the current year.
Advocacy groups have raised concerns about whether the adjustment adequately addresses beneficiaries’ financial needs. An AARP survey found that 76% of respondents indicated a 3.5% adjustment would be insufficient, while the organization noted that approximately 40% of Social Security beneficiaries ages 65 and older depend on the program for at least half their income. The Social Security Administration will distribute notices to beneficiaries detailing their specific 2027 benefit amounts, with online access becoming available in late November for those with My Social Security accounts.
Beneficiaries should note that increases to Medicare Part B and Part D premiums, which may be deducted directly from benefit checks, could affect their net monthly payments. Standard Medicare Part B premiums are projected to rise to $209.50 in 2027 from $202.90 in 2026.
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