The figures are in: Millions of Americans will receive larger monthly Social Security payments next year.
The Social Security Administration announced Wednesday that Social Security beneficiaries will receive a 3.6% cost-of-living adjustment, or COLA, in 2027. The increase will affect more than 76 million retirees, disabled workers and other beneficiaries.
The adjustment is the largest in four years and the biggest since the 8.7% increase announced in 2022 for 2023, when inflation reached a 40-year high.
Annual COLAs are designed to help beneficiaries, most of whom are seniors, keep pace with inflation and maintain their purchasing power.
What is the Social Security COLA for 2027?
The Social Security Administration announced a 3.6% COLA for 2027. The increase applies to Social Security retirement,
survivor and disability benefits, as well as Supplemental Security Income payments.
How much will Social Security checks increase in 2027?
The amount of the increase will depend on each recipient's current monthly benefit.
According to the Social Security Administration, the 3.6% COLA will increase the average monthly retirement benefit by about $75, from approximately $2,095 to $2,170.
How much would the 2027 COLA increase your Social Security payment?
A 3.6% cost-of-living adjustment would increase monthly benefits by approximately:
- $36 for someone receiving $1,000 per month.
- $54 for someone receiving $1,500 per month.
- $72 for someone receiving $2,000 per month.
- $90 for someone receiving $2,500 per month.
- $108 for someone receiving $3,000 per month.
For retirees receiving larger monthly benefits, the increase could add up to hundreds of dollars over the course of a year.
When will the 2027 COLA take effect?
Most Social Security beneficiaries will begin receiving higher payments in January 2027.
Supplemental Security Income recipients will begin receiving payments reflecting the increase on Dec. 31, 2026, according to the Social Security Administration.
Why did the Social Security COLA increase in 2027?
The annual cost-of-living adjustment is based on federal inflation data. The Social Security Administration calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.
The 2027 adjustment reflects changes in consumer prices during the period used to calculate the annual increase.
What was the Social Security COLA for 2026?
The Social Security Administration announced a 2.8% COLA for 2026. That increase was larger than the 2.5% adjustment for 2025 but well below the 8.7% increase for 2023.
Social Security payment calendar for 2027
The Social Security Administration has published its 2027 benefit payment schedule.
In general, Social Security payments are distributed monthly according to the following schedule:
- Third day of the month: People who began receiving benefits before May 1997, unless the payment date falls on a weekend or federal holiday.
- Second Wednesday of the month: People whose birthdays fall between the first and 10th.
- Third Wednesday of the month: People whose birthdays fall between the 11th and 20th.
- Fourth Wednesday of the month: People whose birthdays fall between the 21st and 31st.
People who receive both Social Security and SSI generally receive their Social Security payment on the third day of the month and their SSI payment on the first day of the month.
If the first day of the month falls on a weekend or holiday, the SSI payment is issued on the last business day of the previous month.
For example, SSI recipients will receive their January 2027 payment on Thursday, Dec. 31, 2026. That payment will reflect the 2027 COLA.
What is SSI?
Supplemental Security Income, or SSI, provides monthly payments to people who meet certain income and resource requirements and are:
- Age 65 or older.
- Blind.
- Disabled and meet the program's eligibility requirements.
SSI is separate from Social Security retirement benefits, although some people qualify for and receive payments from both programs.
This article originally appeared on Rochester Democrat and Chronicle: Social Security benefits to increase 3.6% in 2027. See how much more you'll get
