The United States has announced a 3.6 per cent increase in Social Security benefits for 2027, giving an average additional $75 a month to retired workers as millions of Americans grapple with rising living costs.
Who gets the raise
The Social Security Administration (SSA) said nearly 72 million beneficiaries will receive higher payments beginning in January, while approximately 7.3 million people receiving Supplemental Security Income (SSI) will see their increases reflected in payments beginning December 31. The adjustment will affect approximately 76 million Americans across the two programmes, with some individuals receiving benefits under both.
The annual cost-of-living adjustment, commonly known as COLA, is designed to help protect the purchasing power of retirees, people with disabilities and other eligible beneficiaries against inflation.
What the numbers look like
According to official figures, the estimated average monthly retirement benefit will rise from $2,095 to $2,170 in January 2027. For retired couples where both spouses receive benefits, the average combined monthly payment is expected to increase from $3,238 to $3,355. The average monthly benefit for workers receiving Social Security Disability Insurance will increase from $1,642 to $1,701.
The adjustment also raises federal SSI payment standards, with the maximum monthly payment for an eligible individual increasing from $994 to $1,029. For an eligible couple, the corresponding amount will rise from $1,491 to $1,544.
Social Security Commissioner Frank J. Bisignano said the adjustment would give 76 million Americans greater financial stability, while adding that the agency was delivering better and faster service under the Trump administration.
Biggest raise in four years
The 3.6 per cent adjustment is higher than the 2.8 per cent increase implemented for 2026, reflecting changes in consumer prices over the measurement period, and is the largest since the 8.7 per cent adjustment announced in 2022.
The annual adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), compiled by the Department of Labor's Bureau of Labor Statistics. The increase is automatic under federal law and does not require separate congressional approval.
The SSA also announced changes to several earnings-related thresholds for 2027. The maximum annual earnings subject to Social Security payroll taxes will increase from $184,500 to $192,300, while for beneficiaries below full retirement age who continue working, the annual earnings limit before benefit withholding begins will rise from $24,480 to $25,560.
Beneficiaries with personal online Social Security accounts will be able to view their updated benefit notices beginning in late November, while those not enrolled in paperless notifications will receive notices by mail during December.
Sources: US raises Social Security benefits by 3.6 pc, Social Security makes cost of living increase in 2027. See How much
Who gets the raise
The Social Security Administration (SSA) said nearly 72 million beneficiaries will receive higher payments beginning in January, while approximately 7.3 million people receiving Supplemental Security Income (SSI) will see their increases reflected in payments beginning December 31. The adjustment will affect approximately 76 million Americans across the two programmes, with some individuals receiving benefits under both.
The annual cost-of-living adjustment, commonly known as COLA, is designed to help protect the purchasing power of retirees, people with disabilities and other eligible beneficiaries against inflation.
What the numbers look like
According to official figures, the estimated average monthly retirement benefit will rise from $2,095 to $2,170 in January 2027. For retired couples where both spouses receive benefits, the average combined monthly payment is expected to increase from $3,238 to $3,355. The average monthly benefit for workers receiving Social Security Disability Insurance will increase from $1,642 to $1,701.
The adjustment also raises federal SSI payment standards, with the maximum monthly payment for an eligible individual increasing from $994 to $1,029. For an eligible couple, the corresponding amount will rise from $1,491 to $1,544.
Social Security Commissioner Frank J. Bisignano said the adjustment would give 76 million Americans greater financial stability, while adding that the agency was delivering better and faster service under the Trump administration.
Biggest raise in four years
The 3.6 per cent adjustment is higher than the 2.8 per cent increase implemented for 2026, reflecting changes in consumer prices over the measurement period, and is the largest since the 8.7 per cent adjustment announced in 2022.
The annual adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), compiled by the Department of Labor's Bureau of Labor Statistics. The increase is automatic under federal law and does not require separate congressional approval.
The SSA also announced changes to several earnings-related thresholds for 2027. The maximum annual earnings subject to Social Security payroll taxes will increase from $184,500 to $192,300, while for beneficiaries below full retirement age who continue working, the annual earnings limit before benefit withholding begins will rise from $24,480 to $25,560.
Beneficiaries with personal online Social Security accounts will be able to view their updated benefit notices beginning in late November, while those not enrolled in paperless notifications will receive notices by mail during December.
Sources: US raises Social Security benefits by 3.6 pc, Social Security makes cost of living increase in 2027. See How much
