Social Security to implement 3.6% cost-of-living adjustment in 2027

The Social Security Administration (SSA) has announced a 3.6% cost-of-living adjustment (COLA) for 2027. This increase will affect approximately 76 million Americans receiving Social Security benefits and Supplemental Security Income (SSI) payments.

Under this adjustment, the average retired worker is expected to see a monthly payout increase of approximately $75. Typical workers with disabilities and survivor beneficiaries are projected to receive about $59 more per month. This 3.6% raise marks the sixth consecutive year that benefits have grown by at least 2.5%.

Financial experts note that while the COLA acts as a raise, its primary purpose is to offset inflation by tying benefits to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Consequently, the increase may not necessarily result in increased purchasing power, as rising costs for groceries, utilities, and Medicare premiums can absorb the additional funds.