The Social Security Administration announced on Wednesday that benefits will rise 3.6 percent in 2027 — a cost-of-living adjustment, known as the COLA, that is up from 2.8 percent this year and the largest since the 8.7 percent surge that took effect in 2023. Nearly 72 million beneficiaries will see the increase in their January payments, and about 7.3 million people on Supplemental Security Income get theirs starting December 31.
In dollars, the average retired worker's monthly benefit climbs from $2,095 to $2,170 — about $75 more a month, roughly $900 over a full year. A retired couple both receiving benefits goes from $3,238 to $3,355, an extra $117. The average widow or widower living alone rises from $1,936 to $2,005, and disabled workers average $1,642 to $1,701. The maximum amount of earnings subject to the Social Security tax also rises, from $184,500 to $192,300, and the earnings limits for people working while collecting benefits go up as well.
"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability. Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."
The number is not negotiated. Federal law ties the COLA to the Consumer Price Index for Urban Wage Earners and Clerical Workers, comparing the average reading for July, August and September against the same three months a year earlier — this year that worked out to 3.6 percent, at the top of the forecasts. The final input arrived Wednesday morning, when the Labor Department reported that consumer prices rose 3.7 percent over the year ending in September, driven by gasoline after the Iran-war energy shock. No vote in Congress is required: if prices rise, benefits rise by the same measure.
AARP welcomed the increase — its analysts had expected almost exactly this figure — while arguing it still does not close the gap for older Americans on fixed incomes. AARP points out that one in five older Americans has no retirement savings at all, so the annual adjustment carries essentials like groceries, utilities and health care. Part of the raise will also be absorbed before it reaches the bank: the 2027 Medicare Part B premium, announced separately, is deducted from most beneficiaries' checks.
The increase lands on top of the administration's broader seniors agenda. Trump campaigned on protecting Social Security, and the White House says the $6,000 senior deduction in the One Big Beautiful Bill means most beneficiaries no longer pay federal tax on their benefits. Beneficiaries do not need to apply for the COLA — it is automatic. Those with a my Social Security account can see their exact new amount online from late November, with paper notices following by mail in December. The first enlarged checks arrive with January's payments.
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