Social Security Benefits Rise 3.6% in 2027, Averaging $75 More a Month
Social Security retirement checks will grow by about $75 a month on average next year, CNBC reported. The Social Security Administration (SSA) announced a 3.6% cost-of-living adjustment on Wednesday, Oct. 14.
No increase has been larger since 2023, when benefits rose 8.7%.
The adjustment, known as a COLA, covers both Social Security and Supplemental Security Income (SSI). Nearly 72 million Social Security beneficiaries will see the higher amount starting in January 2027, the SSA said.
About 7.3 million SSI recipients will see higher payments beginning Dec. 31, 2026. Some people receive both benefits.
What the Average Check Looks Like
CBS News reported that the average payment will rise by roughly $75 to $2,170 a month. By comparison, this year's COLA was 2.8%.
Higher earners face a separate change. The maximum amount of earnings subject to the Social Security tax will increase to $192,300 in 2027 from $184,500, the agency announced.
How the Increase Compares With Inflation
The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a Bureau of Labor Statistics measure of prices paid by workers. CBS News said the calculation uses inflation data from July through September.
On the same day, the Labor Department reported that the broader consumer price index rose 3.7% over the 12 months through September. CBS News linked this year's higher inflation partly to fuel prices pushed up by the war in Iran.
The outlet also said the 2.8% adjustment in 2026 has trailed the CPI for the last seven months.
Advocates Say the Raise Falls Short
Shannon Benton, executive director of the Senior Citizens League, told CBS News that a 3.6% COLA is welcome but would not restore purchasing power seniors have already lost. COLAs, she said, are designed to keep pace with inflation.
They are not meant to make up for years of falling behind.
Others echoed her. Nancy Altman, president of Social Security Works, said in an email that the increase is not keeping up with prices.
Max Richtman, president of the National Committee to Preserve Social Security and Medicare, favors switching to the CPI-E, an index meant to reflect the living costs of older Americans.
Richtman's group has endorsed two congressional bills that would make that change: the Social Security Expansion Act and the Social Security 2100 Act.
AARP data cited by CNBC show about 40% of beneficiaries ages 65 and over rely on Social Security for at least half of their income. CBS News, citing government data, said the poverty rate among seniors rose to 15.4% last year from 14.2% in 2022.
When Notices Arrive
People with a personal mySocial Security account can view their COLA notice online starting in late November, up to three weeks before a paper notice would arrive. Those without an account must create one and enroll in paperless notices by Nov. 18 to see it online.
Everyone else will get the notice by mail in December.
The notice runs one page. It lists the exact dates and dollar amounts of a person's new benefit and any deductions. Medicare enrollees can find their 2027 premium in the account's Message Center starting in late November, the SSA said.