A shopper looks at a beverage display June 4, 2026 at the Market 32 supermarket in South Burlington, Vermont.
Robert Nickelsberg | Getty Images
Social Security’s cost-of-living adjustment will be 3.6% in 2027, the Social Security Administration announced Wednesday.
The cost of living adjustment, or COLA, provides an annual inflation adjustment to Social Security and Supplemental Security Income, or SSI, benefits.
Social Security retirement benefits will increase by an average of $75 per month, the agency said.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, providing them with greater financial stability,” Social Security Commissioner Frank Bisignano said in a statement.
About 72 million Social Security beneficiaries will see their benefits increase in January, according to the SSA. About 7.3 million SSI recipients will receive higher payments starting Dec. 31, the agency said.
The 3.6% COLA for 2027 is in line with projections from Social Security experts, who last month predicted an increase from 3.5% to 3.6%.
Larger COLA Comes Amid Higher Inflation
The 3.6% COLA for 2027 is the largest benefit increase since 2023. That year, beneficiaries received an 8.7% increase in benefits – the highest in four decades – in response to rising inflation.
The 2026 COLA was 2.8%.
New government inflation data released on Wednesday shows that the rise in consumer prices is accelerating. The consumer price index rose 3.7% over the past 12 months, driven by rising gasoline prices.
About 40% of Social Security recipients age 65 and older rely on the program for at least half of their income, according to AARP. A recent AARP survey found that 76% of respondents said a 3.5% COLA would not be enough.
The Social Security COLA is “critically important” because it helps millions of Americans cover growing everyday expenses, including groceries, everyday bills and health care, AARP CEO Myechia Minter-Jordan said in a statement.
“There are a lot of financial risks at play right now for older Americans: One in five has no retirement savings, and more people feel financially insecure this year than last,” Minter-Jordan said.
This is a developing story. Please refresh for updates.
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