Social Security 2027 COLA Is Official: Retirees Get $75 More a Month as Benefits Rise 3.6%, Highest Raise in 4 Years, But Affordability Concerns Remain

Social Security benefits will increase by 3.6% in 2027, with the average retirement benefit rising by $75 per month.

The Social Security Administration (SSA) announced the 2027 cost-of-living adjustment (COLA) in a press release on Wednesday. The increase begins in January 2027.

The 3.6% adjustment is the highest COLA in four years. Based on SSA estimates, the average retired worker’s monthly benefit will rise from $2,095 to $2,170, according to AARP.

How The COLA Works

The Increased payments for about 7.3 million people receiving Supplemental Security Income will begin Dec. 31, 2026. The Social Security Act ties the COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, the agency noted.

SSA Commissioner Frank Bisignano said, “Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability.”

Account holders can view their COLA notice online starting in late November, the agency said. Those without an account must enroll in paperless notices by Nov. 18. Others will receive a notice by mail in December.

The standard Medicare Part B monthly premium is projected to rise by $6.60 to $209.50 in 2027. For most enrollees, it is deducted from their Social Security payments, AARP reported.

Forecasts Before The Announcement

Boston University economist Laurence Kotlikoff had estimated the 2027 COLA at about 3.4% and argued that annual adjustments can leave recipients exposed to rising prices. AARP had projected a 3.6% increase. The 2026 COLA was 2.8%.

AARP Weighs In

“There’s a lot on the line financially right now for older Americans: one in five have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security’s cost-of-living adjustment (COLA) critically important. It helps millions of Americans keep up with rising costs for groceries, routine bills, health care and other everyday expenses,” said AARP CEO Myechia Minter-Jordan.

A recent AARP survey found 76% of respondents said a 3.5% COLA would not be enough.

Rich Johnson, vice president of financial security at the AARP Public Policy Institute, predicted that “affordability will still be an issue” in 2027 even with this COLA, the report added.

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