Social Security announced a 3.6% benefit increase for 2027 on Wednesday, worth about $75 a month to the average retiree.
By the numbers: Nearly 72 million Social Security beneficiaries see the raise starting in January 2027, and about 7.3 million people on Supplemental Security Income get theirs on December 31, 2026. Some people receive both.
- Average Social Security retirement benefits rise by about $75 per month, according to the agency.
Zoom in: The maximum earnings subject to Social Security tax climbs to $192,300. The earnings limit for workers below full retirement age rises to $25,560, with $1 deducted for every $2 earned above it.
What they're saying: "Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," Commissioner Frank J. Bisignano said in the release.
The backstory: The adjustment is tied by law to the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is why it arrives in the same hour as the September inflation report every October.
Yes, but: The raise trails the prices driving it: gasoline rose 34.2% over the 12 months ending in September and airline fares rose 22.4%, per the Bureau of Labor Statistics.
What's next: COLA notices appear in my Social Security accounts in late November, up to three weeks before the paper version arrives. Enroll in paperless notices by November 18 to see yours online.
- Medicare premium figures for 2027 land in the same message center in late November, and those deductions decide the net check.
Why it matters: This is the largest single annual income adjustment in the country, and for millions of retirees it sets the household budget for the next 12 months.
