Social Security's 2027 COLA is the biggest since 2023. How it affects your payments.
The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, the largest increase since 2023. While the adjustment aims to provide financial stability, critics argue the index used does not accurately reflect the specific expenses faced by retirees.
Why it matters
This adjustment directly impacts the financial planning and purchasing power of over 72 million Americans reliant on Social Security and SSI benefits.
2027's cost-of-living adjustment (COLA) was announced today. (Douglas Rissing via Getty Images) Social Security and SSI benefits will increase by 3.6% in 2027 for more than 72 million people, the Social Security Administration (SSA) announced Wednesday.
The cost-of-living adjustment (COLA) is the biggest since 2023 and means, on average, retirement benefits will rise by $75 a month, SSA said.
The Committee for a Responsible Federal Budget (CRFB) says that works out to roughly $900 a year, and estimates the highest earners will see an increase of more than $2,200 a year.
SSA calculates the COLA based on the average year-over-year change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (a form of measuring inflation) for July, August and September.
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