Roughly 76 million Americans will see bigger Social Security and Supplemental Security Income (SSI) payments next year. The Social Security Administration (SSA) announced on Wednesday, Oct. 14 that benefits will rise 3.6% in 2027.
That is a step up from the 2.8% increase retirees received in 2026, and CBS News noted it is the largest cost-of-living adjustment since 2023.
- 3.6%2027 cost-of-living adjustment
- ~$75Monthly raise, average retiree
- $2,170New average retired-worker benefitUp from about $2,095
- 76MAmericans affected
Source: Social Security Administration, AARP
When the Bigger Checks Arrive
The timing depends on which program you're in:
- Social Security: the increase shows up in payments made in January 2027.
- SSI: recipients get the higher amount starting Dec. 31, 2026.
The SSA says people who want to see their new benefit amount online should have a my Social Security account set up by Nov. 18. Notices will appear in the online Message Center in late November, while paper notices go out by mail in December.
How Much More People Will Get
According to AARP's breakdown of SSA estimates, average monthly benefits will change roughly as follows:
| Beneficiary type | 2026 average | 2027 average | Increase |
|---|---|---|---|
| Retired worker | $2,095 | $2,170 | +$75 |
| Survivor | $1,936 | $2,005 | +$69 |
| Disabled worker (SSDI) | $1,642 | $1,701 | +$59 |
Individual raises depend on each person's current benefit.
How the COLA Is Calculated
The adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA compares the average for July through September with the same months a year earlier. Overall consumer prices were up 3.7% from a year earlier in September, CBS reported, citing Labor Department data.
Source: Social Security Administration
View the data
| Value | |
|---|---|
| 2020 | 1.6% |
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
| 2027 | 3.6% |
Higher Earners Will Pay Tax on More Income
The maximum amount of wages subject to the Social Security payroll tax rises to $192,300 in 2027, up from $184,500 this year.
The Medicare Question
For many retirees, the real raise depends on the Medicare Part B premium, which is usually deducted straight from Social Security checks. The 2027 premium hasn't been announced yet. Medicare's trustees have projected it at about $209.50 a month, up from $202.90, AARP reports. The Centers for Medicare & Medicaid Services typically confirms the figure in late October or November. Medicare open enrollment also began Oct. 15; here's what's changing for 2027.
Advocates Say It Isn't Enough
Senior advocacy groups welcomed the bump but argued it doesn't fully cover what retirees have lost to years of price increases. Shannon Benton, executive director of The Senior Citizens League, told CBS the raise would not necessarily restore lost purchasing power. Other groups, including the National Committee to Preserve Social Security and Medicare, renewed calls to base the COLA on an index that tracks spending by older Americans, known as CPI-E.
The announcement also lands amid long-running worries about the program's finances. CBS reported that the main trust fund is projected to run short in about six years, which could trigger an automatic benefit cut of more than 20% if Congress doesn't act.
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