Social Security benefits will rise 3.6% in 2027, agency says

The cost-of-living adjustment will reach nearly 72 million Social Security beneficiaries in January, while SSI payments begin December 31.

A 3.6% adjustment for 2027

The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027. Nearly 72 million people receiving Social Security benefits will see the increase beginning with January payments, while about 7.3 million Supplemental Security Income recipients will receive adjusted payments starting December 31. Some people receive both programs, so the agency’s totals overlap rather than representing entirely separate groups.^[1][2]

How the rate was set

Federal law ties the annual adjustment to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The calculation compares the relevant third-quarter index readings with the prior benchmark. It is automatic and does not require a separate vote by Congress. Reuters noted that the new increase is larger than the 2.8% adjustment applied for 2026.^[1][2]

What beneficiaries should expect

A 3.6% COLA means the gross benefit rises by that percentage, but the change in a recipient’s deposit can differ once Medicare premiums, tax withholding or other deductions are applied. The Social Security Administration will send individual notices with new benefit amounts. Beneficiaries can also review notices through their official my Social Security accounts instead of relying on unofficial calculators or unsolicited messages.^[1][2]

Avoiding scams around the announcement

The agency does not require beneficiaries to pay a fee, provide banking credentials by text or call a private number to receive the adjustment. The increase is applied automatically. Because COLA announcements often generate misleading ads and impersonation attempts, recipients should use SSA.gov for account access and independently verify any communication asking for personal information. The confirmed national change is 3.6%; each household’s dollar increase depends on its current benefit and deductions.^[1][2]