Social Security benefits increase will hit 3.6% in 2027

WASHINGTON — The Social Security Administration announced on Wednesday that recipients will receive a 3.6% increase in benefits in 2027.

The cost-of-living adjustment, or COLA, will begin for 72 million Social Security beneficiaries in January. It will apply for Supplemental Security Income, or SSI, recipients beginning on Dec. 31. 

Some individuals receive both types of benefits. SSI provides payments to 7.3 million people with limited income and resources.

The COLA is based on continuing inflation, as recorded in the Consumer Price Index from the third quarter of 2025 through the third quarter of 2026.

On average, Social Security retirement benefits will increase by about $75 a month, the agency said. 

Tax rates to fund the program will stay virtually unchanged, at 6.2% of income up to a certain amount. The cap will increase slightly from $184,500 this year to $192,300 in 2027. 

Social Security is facing a shortfall, with payments to recipients outpacing tax collections. 

Without congressional action, that will mean benefits will automatically begin to decrease in 2032. Candidates in key U.S. Senate races this year, whose six-year terms would mean they’ll be in office when the benefits cliff arrives, have stayed relatively quiet on the issue.