The Social Security Administration announced Wednesday that monthly benefits for approximately 76 million Americans will increase by 3.6% in 2027. This cost-of-living adjustment, or COLA, represents the largest boost to benefits in four years and marks the second consecutive year that the annual increase has accelerated.
The adjustment follows data from the Bureau of Labor Statistics showing that the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W, rose 3.9% in September. The agency calculates the annual COLA by averaging the CPI-W increase over the three-month period of July, August, and September, which reached approximately 3.6% this year. The 2027 increase is up from the 2.8% adjustment implemented for 2026.
According to government data, inflation accelerated this year after the U.S. and Israel attacked Iran, which caused energy market disruptions. These events pushed crude oil prices above $100 a barrel and led to record-high prices for diesel fuel. The main Consumer Price Index rose to 3.7% in September, compared to 3.4% in August.
The 3.6% increase affects approximately 76 million people, including roughly 72 million Social Security recipients and 7.3 million Supplemental Security Income (SSI) beneficiaries. For a typical retired worker, this adjustment translates to an increase of $75 per month, bringing the average monthly benefit to $2,170.
A person receiving these benefits will notice the change in their payment amount starting in late December 2026 or January 2027. Specifically, SSI recipients will see the higher payments first on December 31, 2026. Social Security recipients will see the increase reflected in their January 2027 checks. This adjustment occurs automatically based on federal inflation formulas.
While the boost increases the monthly income for millions, it also represents an increase in federal outlays from the Social Security trust funds. Recipients do not need to take any action to receive the adjusted amount.