Social Security Administration announces 3.6% cost-of-living adjustment for 2027

The Social Security cost-of-living adjustment will be 3.6% in 2027, the Social Security Administration said on Wednesday.

Social Security retirement benefits will go up by $75 per month, on average, the agency said.

The cost-of-living adjustment, or COLA, provides an annual inflation adjustment to both Social Security and Supplemental Security Income, or SSI, benefits.

"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," Social Security Commissioner Frank Bisignano said in a statement.

Around 72 million Americans will see the benefit increases in January, according to SSA. About 7.3 million SSI beneficiaries will receive higher payments starting Dec. 31, the agency said.

The 3.6% COLA for 2027 is in line with Social Security experts' projections, which last month forecast an increase of 3.5% to 3.6%.

The 3.6% COLA for 2027 is the largest increase to benefits since 2023. That year, beneficiaries received an 8.7% benefit boost — the highest in four decades — in response to rising inflation.

New government inflation data released on Wednesday shows consumer price increases are accelerating. The consumer price index rose 3.7% over the past 12 months, as gas prices jumped.

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