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[BUSINESS] · United States · 49 sources

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Social Security benefits to rise 3.6% in 2027

The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027, affecting approximately 72 to 76 million Americans. This increase, the largest since 2023, is intended to help retirees and individuals with disabilities maintain purchasing power against inflation. On average, retirement beneficiaries are expected to see a monthly increase of approximately $75, with average monthly benefits rising from $2,095 to $2,170.

Supplemental Security Income (SSI) recipients will see their increased payments begin on December 31, 2026. The adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2026.

Additionally, the annual salary cap for payroll taxes financing Social Security will increase from $184,500 in 2026 to $192,300 in 2027. While the COLA provides relief, many advocates and retirees expressed concern that the increase may not fully offset the rising costs of essential goods, including healthcare, housing, and food.

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AARP · Bureau of Labor Statistics · Department of Veterans Affairs · Donald Trump · Frank Bisignano · Frank J. Bisignano · Social Security Administration · United States

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