A 3.6% cost-of-living adjustment is on the way for 2027, lifting both Social Security and Supplemental Security Income benefits. On average, Social Security retirement checks will climb by about $75 per month. "Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," Social Security Commissioner Frank Bisignano said.
Payments will arrive on a split schedule: roughly 72 million people receiving Social Security will see the higher amounts in January, and about 7.3 million SSI beneficiaries will begin getting larger checks on Dec. 31. Want a quick estimate of your own bump? Multiply your current monthly benefit by 0.036.
The annual COLA is based on how the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, in the third quarter compares with the same period a year earlier. The CPI-W is a slice of the broader consumer price index that tracks price changes for urban households. In September data released Wednesday, the CPI-W was up 3.9% over the past 12 months. Separate figures show the overall consumer price index rose 3.7% year over year as gas prices jumped.
This 3.6% adjustment matches last month's projections from Social Security specialists calling for a 3.5% to 3.6% increase. It is the largest raise since 2023, when benefits surged 8.7%. For context, the 2026 COLA was 2.8%. CNBC highlighted the largest and smallest annual COLA changes using Social Security Administration data.
Cost-of-living adjustments set real income for tens of millions of people. Market Briefs covers that calculation free every morning.
Your net deposit can change if Medicare premiums rise, since they may be deducted from your check. According to the Medicare trustees, the standard Part B premium is expected to be $209.50 in 2027, rising from $202.90 in 2026. Some people with higher incomes will also pay Income-Related Monthly Adjustment Amounts. Part B pays for care that is medically necessary as well as preventive services.
Separately, KFF - the nonpartisan health policy research group - reports that Medicare Part D prescription drug plans could see modest premium increases in 2027. The Social Security Administration will send personalized COLA notices detailing your 2027 amount, payment dates, and any deductions. If you have a My Social Security account, you can see this in late November.
To view your COLA notice online, create a My Social Security account and opt in to paperless notices by Nov. 18. Mailed COLA statements will arrive in December, and the agency urges beneficiaries to keep their address current. You'll also find the 2027 Medicare premium figures in your My Social Security message center in late November.
There is ongoing debate about how the COLA should be calculated. One idea is the chained CPI, which adjusts for how people change their buying habits as prices rise. An AARP analysis found switching to chained CPI would "substantially lower benefits over time." Another option is the Consumer Price Index for the Elderly, or CPI-E, focused on those 62 and over, though some experts say it does not consistently grow much faster than CPI-W. As lawmakers consider broader Social Security reforms, changing the COLA formula is likely to come up. "Social Security's future is on the ballot this November, and that includes the size of annual COLA adjustments," said Nancy Altman, president of Social Security Works.
For many retirees, these dollars matter. AARP notes that about 40% of beneficiaries age 65 and older rely on Social Security to provide no less than half of their income. A recent AARP survey found that 76% of respondents viewed a 3.5% COLA as insufficient.
AARP CEO Myechia Minter-Jordan called the COLA "critically important" because it helps cover everyday costs like groceries, routine bills, and health care. "There's a lot on the line financially right now for older Americans: one in five have no retirement savings, and more people feel financially insecure this year than last," she said.
Bottom line for your wallet: benefits are set to rise 3.6% in 2027, but what lands in your account will depend on Medicare premiums and any deductions listed in your mailed or online notice. Keep an eye on your My Social Security message center in late November for the specifics.
How the COLA is measured matters as much as the headline figure. Get the free Market Briefs daily newsletter and follow it.
