Key takeaways
- Benefits will increase 3.6% starting with January 2027 payments.
- The average retired worker's benefit will rise by about $75 a month.
- The 2027 Medicare Part B premium, usually announced in November, will affect how much you keep.
The Social Security Administration announced on Oct. 14 that benefits will increase 3.6% in 2027. The cost-of-living adjustment (COLA) affects roughly 72 million people, including retirees, people with disabilities, survivors and Supplemental Security Income (SSI) recipients.
It’s a bigger increase than the 2.8% COLA for 2026, reflecting higher inflation this year.
How much more you’ll get
The SSA said the average monthly retirement benefit will rise by about $75. To estimate your own increase, multiply your current monthly benefit by 0.036.
| Current monthly benefit | Approximate increase |
|---|---|
| $1,500 | $54 |
| $2,000 | $72 |
| $2,500 | $90 |
| $3,000 | $108 |
When it arrives
The new amount starts with January 2027 payments. SSI recipients will see it in their payment dated Dec. 31, 2026. Social Security will send personalized notices in early December. If you have a my Social Security account, you can view your notice online.
Watch the Medicare premium
For most beneficiaries, Medicare Part B premiums are deducted from Social Security. The 2026 standard Part B premium was $202.90 a month. The 2027 premium is typically announced in November, and any increase will take a bite out of the COLA.
How the COLA is calculated
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July through September, compared with the same period a year earlier.
Make the most of your raise
- Review your Medicare plan during open enrollment, Oct. 15 to Dec. 7. A cheaper plan could protect more of your increase. See our Medicare guide.
- Check for the new senior deduction of up to $6,000 on your federal taxes, subject to income limits. Read about the new deductions.
- Put idle cash to work in a high-yield savings account so it keeps up with inflation.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
