Social Security Announces 3.6% Raise, About $75 a Month on Average

Social Security retirement benefits will rise by an average of about $75 a month in January after the agency announced a 3.6% cost-of-living adjustment for 2027. The increase applies to nearly 72 million people receiving Social Security benefits, while Supplemental Security Income payment increases begin December 31.

What the New Percentage Means

The change is an inflation adjustment, not a flat $75 payment to every recipient. A person receiving a larger benefit will generally see a larger dollar increase; someone receiving a smaller benefit will see less. The agency estimates the average retired worker benefit will increase from about $2,095 to $2,170 per month.

When People Will Learn Their Amount

The Social Security Administration says personalized COLA notices will become available in online accounts in late November, and mailed notices are expected in December. Those documents provide the actual updated benefit figure and any deductions for each recipient.

Other Rules Change, Too

The maximum earnings subject to Social Security tax will increase from $184,500 to $192,300 in 2027. The income limit used for people claiming benefits before full retirement age also rises. Medicare premium deductions may affect the net amount deposited into an individual’s bank account, so the gross COLA percentage is not a promise of the same take-home increase.

References: Social Security Announces 3.6 Percent Benefit Increase for 2027 | 2027 Cost-of-Living Adjustment (COLA) Fact Sheet