2027 Social Security COLA: Benefits Rise 3.6%. Here Is What Changes
The 2027 Social Security COLA is official. The Social Security Administration (SSA) announced that benefits will rise 3.6% next year. As a result, nearly 72 million Social Security beneficiaries will see larger checks starting in January 2027.
What is a COLA?
COLA stands for cost-of-living adjustment. Each year, Social Security raises benefits to help them keep up with inflation. The increase is based on a consumer price index, so a year with faster price growth usually means a bigger COLA.
The 2027 Social Security COLA at a glance
| Item | What changes |
|---|---|
| COLA | 3.6% |
| Average retirement benefit | About $75 more per month |
| Social Security payments | Increase starts January 2027 |
| SSI payments | Increase starts December 31, 2026 |
| Taxable wage cap | $192,300, up from $184,500 |
About 7.3 million people who receive Supplemental Security Income (SSI) will also get the 3.6% raise. Their higher payments begin on December 31, 2026.
When you will get the 2027 Social Security COLA
For most beneficiaries, the first larger payment arrives in January 2027. However, there are two steps you can take now:
- Check your notice online. If you have a my Social Security account and choose paperless notices by November 18, you can see your new benefit amount in the Message Center starting in late November.
- Watch your mail. If you do not have an online account, the SSA will mail your notice in December.
How Medicare fits in
For many retirees, the real raise depends on Medicare. That is because Part B premiums are usually taken straight out of Social Security checks.
As of this writing, the official 2027 Part B premium had not yet been announced. However, the Medicare trustees projected it at $209.50 a month, up from $202.90 in 2026, according to AARP. If that projection holds, the increase would be about $6.60 a month. In that case, most retirees would keep most of their COLA.
There is also a safety net called the "hold harmless" rule. In short, it keeps a Part B premium increase from shrinking most people’s Social Security check below the prior year’s amount. Still, about 30% of enrollees do not qualify for it, including higher earners who pay extra income-based surcharges.
Higher earners: the tax cap goes up
Workers pay Social Security tax only up to a yearly earnings limit. For 2027, that cap rises to $192,300, up from $184,500. So if you earn more than $184,500, a bit more of your pay will be subject to Social Security tax next year.
Does 3.6% keep up with prices?
That depends on what you buy. Consumer prices rose 3.7% in the 12 months through September, according to the Bureau of Labor Statistics. Gasoline alone was up more than 34%. So for retirees who drive a lot, the COLA may not fully cover rising costs. On the other hand, those who spend more on food and housing may come closer to breaking even.
The bottom line
The 2027 Social Security COLA is 3.6%, or about $75 a month for the average retiree. Checks rise in January, while SSI payments rise on December 31. To see your exact amount early, set up paperless notices in your my Social Security account by November 18.
This article is for general information only and is not financial advice. Medicare figures for 2027 were projections at the time of writing.
