Social Security raises 2027 benefits by 3.6%, adding $75 monthly on average
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, the largest increase since 2023. This raises average monthly benefits by $75 for 72 million recipients, though higher Medicare premiums may offset gains for some.
Key points
- The 2027 COLA is set at 3.6%, up from 2.8% in 2026.
- Average Social Security retirement benefits will increase by $75 per month.
- About 72 million Social Security recipients and 7.3 million SSI beneficiaries will see higher payments.
- The increase follows a 3.7% rise in the consumer price index over the past 12 months.
- Medicare Part B premiums are projected to rise to $209.50 in 2027, potentially reducing net take-home pay.
Background
Prior to the announcement, experts forecasted a 3.5% to 3.6% increase, with our archive noting that this would be the largest gain in three years. The 2023 COLA was 8.7%, the highest in four decades, while the 2026 adjustment was 2.8%.
How outlets are covering it
CNBC and the Social Security Administration emphasize the 3.6% increase as a significant boost for 76 million Americans, with Commissioner Frank Bisignano citing greater financial stability. ABC News notes the increase follows a surge in gasoline costs that drove September inflation to a four-month high. Federal News Network highlights that Federal Employees Retirement System annuitants will receive a smaller 2.6% adjustment due to statutory formulas, unlike Civil Service Retirement System retirees who get the full 3.6%. AARP warns that despite the COLA, 76% of respondents felt a 3.5% increase would not be sufficient to cover rising costs, and CNBC notes that higher Medicare premiums may erode the benefit increase for many retirees.
Why it matters
The COLA directly impacts the monthly income of 76 million Americans, including retirees and individuals with disabilities. While the 3.6% increase is the largest since 2023, it may not fully offset rising healthcare costs and inflation, leaving many beneficiaries financially vulnerable. The differential treatment of federal retirees also highlights disparities in how different retirement systems adjust to inflation.
What to watch
Beneficiaries can view their specific COLA notices online starting in late November. Those without online accounts must create one by November 18 to access digital notices, or wait for mailed statements in December. Medicare premium details for 2027 will also be available in late November.
- Social Security Administration announces 3.6% cost-of-living adjustment for 2027 CNBC
- Social Security Says Retirees Will Get a 3.6% Raise for 2027 The New York Times
- Social Security Administration says cost-of-living adjustment will rise 3.6% in 2027 ABC News - Breaking News, Latest News and Videos
- Social Security Announces 3.6 Percent Benefit Increase for 2027 Social Security Administration (.gov)
- 2027 COLA is 3.6% for many retirees, but some feds will see a smaller adjustment Federal News Network
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