Social Security beneficiaries will see a monthly benefit increase of 3.6 percent in 2027, as announced by the Social Security Administration on Oct. 14. This increase is higher than the 2.8 percent rise that took effect in 2026 and is the largest increase since 2023.
According to the Social Security Administration, Social Security retirement benefits will increase by about $75 per month, on average, beginning in January.
In late November, individuals with a my Social Security online account will be able to view their COLA benefit notice for 2027. In December, Social Security will start mailing notification letters to beneficiaries who have not chosen to receive paperless notices.
Each year, the federal government determines the change in Social Security benefits based on inflation. This is the cost-of-living adjustment (COLA).
Specifically, the annual COLA is based on the percentage increase (if any) in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as established by the Bureau of Labor Statistics. CPI-Ws are calculated monthly by the Bureau of Labor Statistics. The 2027 COLA is based on the percentage increase in the CPI-W from the third quarter of 2025 through the third quarter of 2026.
If you have questions about the 2027 COLA or how it could impact your health coverage, our advisors are here to help.
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