Social Security Announces COLA Increase, Touting “Greater Financial Stability” For 76 Million Americans
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While the economy is booming, the value of the dollar isn’t what it once was.
With that, the cost of living is often trending upward as well.
For retired Americans and other beneficiaries, the rising cost of living poses a significant hurdle, with Social Security providing a fixed income that can make budgeting a challenge.
On Wednesday, Oct. 14, the Social Security Administration announced its 2027 Cost-of-Living Adjustment, often referred to by the acronym COLA.
Here’s what retirees and other beneficiaries can expect regarding their benefits in the coming new year.
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What Will Benefits For Social Security Recipients Be Like In 2027?
In an announcement made by the Social Security Administration on Oct. 14, the Cost-of-Living Adjustment (COLA) for 2027 was revealed.
Recipients of Social Security and Supplemental Security Income (SSI) can expect to see an increase to their benefits by 3.6%.
This will begin for the majority of retired, disabled, or other Americans who are beneficiaries of the Social Security program in January of 2027, with 72 million recipients seeing this increase.
The COLA of 3.6% also impacts approximately 7.3 million recipients of SSI, with the increased benefits kicking in on Dec. 31, 2026.
Social Security noted that its retirements benefits, on average, are increasing by $75 per month in 2027.
In an Oct. 14 press release, SSA Commissioner Frank J. Bisignano said, “Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability. Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people.”
The number 76 million is arrived at when taking into account that some Americans receive both Social Security and SSI, the announcement noted.
This announcement comes just a matter of weeks before the 2026 midterm election, which is seeing President Donald Trump campaign in several battleground states in hope of maintaining a Republican majority in the House of Representatives and the Senate.
Trump has promised every American adult a $5,000 check if the House and Senate remain in Republican control after the midterm.
Additional benefit changes to Social Security that were announced on Oct. 14 include the following:
- The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $192,300;
- The earnings limit for workers who are younger than full retirement age will increase to $25,560; and
- The earnings limit for people reaching their full retirement age in 2027 will increase to $67,920.
Of course, there is no limit on earnings for workers who are of full retirement age or older for the entire year.
Individuals who receive paperless notices regarding their My Social Security account can expect to receive a formal notice of the COLA change to their benefits in late November.
Other beneficiaries of Social Security will be notified by mail of the COLA change to their benefits approximately three weeks later than paperless account holders, with mailed notices expected to arrive in December.
For more information on the upcoming Cost-of-Living Adjustment for 2027, view the Social Security COLA fact sheet, here.
Manage or create your own My Social Security online account, here.
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