WASHINGTON, DC – The Social Security Administration announced on Tuesday that approximately 76 million Americans will receive a 3.6 percent cost-of-living adjustment (COLA) beginning in 2027.
The adjustment will affect roughly 72 million Social Security beneficiaries starting in January 2027, with increased payments for about 7.3 million Supplemental Security Income (SSI) recipients rolling out on December 31, 2026. According to federal estimates, the average retired worker will see an increase of about $75 per month.
The annual COLA calculation is mandated by the Social Security Act and tied directly to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) compiled by the Department of Labor's Bureau of Labor Statistics.
Alongside the benefit adjustments, other annual metrics based on average wage growth are set to shift. The maximum amount of earnings subject to the Social Security tax—known as the taxable maximum—will rise to $192,300 in 2027, up from $184,500.
Beneficiaries enrolled in Medicare will be able to review their specific 2027 benefit amounts through their personal my Social Security online message centers starting in late November, while those without accounts will receive formal notices by mail in December.
