SignalStack
Reading glasses resting on a blank sheet of paper on a wooden kitchen table, next to a coffee mug, a closed notebook with a pencil and a potted plant.

AI-generated illustration

Guides

2027 Social Security COLA: 3.6% Raise and What Else Changes

Edited by SignalStack · Corrections

TL;DR

  • How much: Social Security benefits and Supplemental Security Income (SSI) rise 3.6% for 2027, the Social Security Administration (SSA) announced on October 14, 2026. SSA estimates the average retired worker’s monthly benefit goes from $2,095 to $2,170, about $75 more.
  • Who: about 76 million people, per SSA: nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients. Some people get both.
  • When: the higher Social Security amount starts with January 2027 payments. The first higher SSI payment arrives on December 31, 2026.
  • How it is computed: the average CPI-W price index for July–September 2026 (328.746) against the same quarter of 2025 (317.265), a 3.6% rise rounded to a tenth, per SSA.

This page is updated in place whenever SSA or CMS publishes new 2027 figures.

What SSA announced

Commissioner Frank J. Bisignano said SSA “will implement this cost-of-living adjustment for 76 million Americans.”

SSA’s actuaries spell out the timing: The 3.6% applies to Social Security benefits for December 2026, which are paid in January 2027, and to SSI payments for January 2027. SSI is normally paid on the 1st, and January 1 is a holiday, so the January SSI payment always goes out at the end of December, SSA says.

Key 2027 figures vs 2026, from SSA’s fact sheet

Item20262027
Taxable maximum (Social Security tax only)$184,500$192,300
Payroll tax rate: employee / self-employed7.65% / 15.30%7.65% / 15.30%
Quarter of coverage$1,890$1,970
Earnings test, under full retirement age$24,480/yr ($2,040/mo)$25,560/yr ($2,130/mo)
Earnings test, the year you reach full retirement age$65,160/yr ($5,430/mo)$67,920/yr ($5,660/mo)
Substantial gainful activity, non-blind$1,690/mo$1,770/mo
Substantial gainful activity, blind$2,830/mo$2,950/mo
Trial work period$1,210/mo$1,270/mo
Maximum benefit, worker retiring at full retirement age$4,152/mo$4,188/mo
SSI federal payment, individual$994/mo$1,029/mo
SSI federal payment, couple$1,491/mo$1,544/mo
SSI resource limit, individual / couple$2,000 / $3,000$2,000 / $3,000
SSI student exclusion, monthly / annual$2,410 / $9,730$2,500 / $10,080
Four cards: 3.6% COLA for 2027 (2.8% in 2026); estimated average retired-worker benefit $2,170 ($2,095 before COLA); SSI individual maximum $1,029 ($994); taxable maximum $192,300 ($184,500).
SSA's headline 2027 figures. Source: SSA 2027 COLA Fact Sheet; SSA COLA Information (ssa.gov/cola).
  • Earnings test: under full retirement age, $1 of benefits is withheld for each $2 above the limit. In the year a worker reaches that age, $1 is withheld per $3 above the higher limit, counting only earnings before the month they reach it. From that month on, there is no limit.
  • Wage-linked amounts: SSA’s blog says several other yearly adjustments are based on increases in average wages, citing the taxable maximum. That cap rises $7,800, or 4.2% (our arithmetic).
  • Maximum benefit: this line is for a worker retiring at full retirement age in each year. It rises $36 (our arithmetic), not 3.6%.

The CPI-W math, step by step

The Social Security Act ties the COLA to the CPI-W, the Bureau of Labor Statistics (BLS) consumer price index for urban wage earners and clerical workers. SSA’s actuaries list the monthly values:

CPI-W20252026
July316.349327.104
August317.306328.481
September318.139330.654
Q3 average317.265328.746

The 2025 quarter is the base because 2025 was the last year a COLA took effect, SSA explains. The 2026 average is 11.481 points higher; divided by 317.265, that is 3.619% (our arithmetic), rounded by law to the nearest tenth: 3.6%. With no rise, or a rounded rise of zero, there is no COLA.

The formula uses the three-month average, not September alone. BLS reported on October 14 that September’s CPI-W was 3.9% above a year earlier (CPI-U: 3.7%). From SSA’s table, July was up 3.4% and August 3.5% (our arithmetic). The October CPI is due November 10 (CPI release dates). For the Fed’s September 16 rate increase, see our September 2026 rate hike report.

SSA’s history table files each COLA under the year it takes effect for December benefits, so this one sits under 2026. By the January they were first paid, recent COLAs were 1.6% (2020), 1.3% (2021), 5.9% (2022), 8.7% (2023), 3.2% (2024), 2.5% (2025) and 2.8% (2026).

Bar chart of Social Security COLAs by year first paid: 1.6% in 2020, 1.3% in 2021, 5.9% in 2022, 8.7% in 2023, 3.2% in 2024, 2.5% in 2025, 2.8% in 2026 and 3.6% in 2027.
The 2027 COLA is the largest since 2023's 8.7%. Source: SSA, COLA Information for 2027 (ssa.gov/cola), adjustments by month received.

What the raise looks like, using SSA’s own averages

SSA’s fact sheet estimates average monthly benefits payable in January 2027, before and after the COLA. The change column is our subtraction.

Beneficiary typeBefore 3.6%After 3.6%Change
All retired workers$2,095$2,170+$75
Aged couple, both receiving benefits$3,238$3,355+$117
Widowed mother and two children$3,932$4,074+$142
Aged widow(er) alone$1,936$2,005+$69
Disabled worker with spouse and child(ren)$2,970$3,077+$107
All disabled workers$1,642$1,701+$59

Worked example: $2,095 × 1.036 = $2,170.42, matching SSA’s $2,170 estimate for the average retired worker; $75 a month is $900 over 12 months (our arithmetic). These are averages. SSA says each person’s notice gives exact dates, the new amount and any deductions.

When the first larger payments arrive

  • November 18, 2026: SSA’s deadline to create a my Social Security account and enroll in paperless notices to see the COLA notice online.
  • Late November 2026: notices appear online for most beneficiaries, up to three weeks before the mailed copy, per SSA.
  • December 2026: SSA mails notices to people who have not enrolled in paperless notices.
  • Thursday, December 31, 2026: first SSI payment at the new rate. SSA’s 2026 calendar also marks this day for people normally paid on the 3rd (Social Security before May 1997, or both Social Security and SSI); its 2027 calendar has no SSI or 3rd-of-month date in January.
  • January 13, 20 and 27, 2027: Social Security payments for birthdays on the 1st–10th, 11th–20th and 21st–31st.

If a payment is late, the calendar asks people to allow three more mailing days before contacting SSA.

Timeline: Oct 14 COLA announced; Nov 18 online-notice deadline; late Nov notices online; Dec paper notices; Dec 31 first higher SSI payment; Jan 13, 20, 27, 2027 Social Security payments.
Dates from SSA's release and payment calendars. Source: SSA press release, Oct 14, 2026; SSA payment calendars.

Medicare Part B for 2027: not announced yet

As of 3:45 a.m. ET on October 16, 2026, CMS had not published 2027 Medicare Part A and B premiums. Its 2026 fact sheet, released November 14, 2025, set the standard Part B premium at $202.90 a month and the deductible at $283; Medicare.gov still shows the 2026 figure. SSA’s press release says Medicare enrollees will see their 2027 premium in the my Social Security Message Center from late November. CNBC notes that Part B or Part D premium increases, which may be deducted directly from benefits, can affect monthly payments. We will add the 2027 figures when CMS publishes them.

What could go right / What could go wrong

What could go right

  • Largest since 2023: 3.6% is the biggest increase since the 8.7% paid from January 2023, and equals the 3.6% paid from January 2012. Yahoo Finance put the two-decade average at 2.6%.
  • More room to work: under full retirement age, a beneficiary can earn $1,080 more (our arithmetic) before withholding starts.
  • Higher SSI: the federal maximum for an individual rises $35 a month (our arithmetic).

What could go wrong

  • Net increase unknown: the 2027 Part B premium is not out yet, so SSA’s figures alone cannot show what will be deposited.
  • Below September’s pace: the COLA (3.6%) is lower than September’s 12-month CPI-W rise (3.9%, per BLS).
  • Higher tax at the top: at the 6.2% employee rate, Social Security tax on wages at the cap goes from $11,439 to $11,922.60 (our arithmetic).

More explainers are in our Guides section.

FAQ

Q How much is the Social Security increase for 2027?

A 3.6%, per SSA. It estimates the average retired worker's benefit rises from $2,095 to $2,170 a month, about $75 more.

Q When will I see the 2027 COLA in my check?

A For people paid by birthday, Social Security payments rise starting January 13, 20 or 27, 2027. SSI's first higher payment is December 31, 2026, a date SSA's calendar also marks for people normally paid on the 3rd.

Q What is the SSI payment for 2027?

A The federal maximum is $1,029 a month for an individual and $1,544 for a couple, up from $994 and $1,491. Countable income reduces it, and some states add a supplement, SSA notes.

Q What is the Social Security earnings limit for 2027?

A $25,560 under full retirement age ($1 withheld per $2 above it) and $67,920 in the year you reach it ($1 per $3). From the month you reach full retirement age, there is no limit.

Q What is the Social Security wage base for 2027?

A $192,300, up from $184,500. The combined employee rate for Social Security and Medicare stays at 7.65%.

Q Has the 2027 Medicare Part B premium been announced?

A Not as of 3:45 a.m. ET on October 16, 2026. The 2026 standard premium is $202.90 a month; we will update this page when CMS publishes 2027.

Sources

  1. Social Security Announces 3.6 Percent Benefit Increase for 2027 (press release, Oct 14, 2026) — Social Security Administration (primary source)
  2. 2027 Cost-of-Living Adjustment (COLA) Fact Sheet — Social Security Administration (primary source)
  3. Latest Cost-of-Living Adjustment (COLA computation) — SSA Office of the Chief Actuary (primary source)
  4. Social Security Cost-of-Living Adjustments (history) — SSA Office of the Chief Actuary (primary source)
  5. SSI Federal Payment Amounts for 2027 — SSA Office of the Chief Actuary (primary source)
  6. Cost-of-Living Adjustment (COLA) Information for 2027 — Social Security Administration (primary source)
  7. Social Security Announces 3.6 Percent Benefit Increase for 2027 (blog, Oct 14, 2026) — Social Security Administration (primary source)
  8. Just Announced! Cost-of-Living Adjustment (COLA) for 2027 (Oct 14, 2026) — Social Security Administration (primary source)
  9. Schedule of Social Security Benefit Payments 2026 (Pub. 05-10031) — Social Security Administration (primary source)
  10. Schedule of Social Security Benefit Payments 2027 (Pub. 05-10031) — Social Security Administration (primary source)
  11. Consumer Price Index Summary, September 2026 (Oct 14, 2026) — U.S. Bureau of Labor Statistics (primary source)
  12. 2026 Medicare Parts A & B Premiums and Deductibles (Nov 14, 2025; no 2027 edition as of Oct 16, 2026, 3:45 a.m. ET) — CMS (primary source)
  13. Medicare costs (checked Oct 16, 2026, 3:45 a.m. ET) — Medicare.gov (primary source)
  14. Social Security Administration announces 3.6% cost-of-living adjustment for 2027 — CNBC
  15. Social Security announces cost-of-living adjustment for 2027 — Fox Business
  16. Social Security announces 3.6% COLA for 2027, the highest in 4 years — Yahoo Finance

Keep reading

More in Guides · All Guides reports