Social Security Benefits to Rise 3.6% in 2027, Largest Increase Since 2023

BALTIMORE — The Social Security Administration announced Wednesday that benefits will increase 3.6 percent in 2027, the largest cost-of-living adjustment since 2023.

The adjustment will raise average monthly retirement benefits by about $75, from roughly $2,095 to $2,170, the agency said. Nearly 72 million Social Security recipients will see higher payments beginning in January 2027. About 7.3 million Supplemental Security Income recipients will receive increased payments starting Dec. 31, 2026.

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

The COLA is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter of 2026. The higher figure reflects elevated inflation this year, driven in part by rising energy prices following the Iran-related conflict and disruptions to oil supplies.

Previous adjustments were 2.8 percent in 2026, 2.5 percent in 2025, and 3.2 percent in 2024. The 2023 COLA was 8.7 percent amid the post-pandemic inflation spike.

AARP CEO Myechia Minter-Jordan said the increase is important because many older Americans face rising costs for groceries, healthcare, and everyday expenses. The Committee for a Responsible Federal Budget noted that the adjustment will boost average benefits by about $900 per retiree annually, with larger increases for higher-benefit recipients.

Medicare Part B premiums, which are deducted from many Social Security checks, are projected to rise $6.60 to $209.50 in 2027, according to the Medicare trustees' report. The final premium amount has not yet been announced.

The Social Security taxable earnings base will also rise from $184,500 to $192,300 in 2027. The agency said beneficiaries can view their new benefit amounts in their online accounts beginning in late November.