2027 Social Security COLA Increase

Key takeaways

• The Social Security cost-of-living adjustment for 2027 is 3.6%.

• COLA is based on the rate of inflation and helps people receiving benefits maintain their purchasing power as the cost of living rises.

• Social Security beneficiaries will receive an increase in their monthly payments in 2027.

• If you receive monthly Social Security benefits, you do not need to do anything to get the increase. The new payment amounts will automatically take effect in 2027.

The Social Security Administration (SSA) updates benefit amounts each year to keep up with rising prices. This increase, known as a cost-of-living adjustment (COLA), helps people receiving Social Security benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), keep up with inflation and the cost of living.

How much is the COLA increase for 2027?

The SSA has announced a 3.6% cost-of-living adjustment for 2027. This year’s 3.6% COLA increase is higher than last year’s 2.8%.

“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” said Commissioner Frank J. Bisignano in a statement. “Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."

How is COLA calculated?

The cost-of-living-adjustment increase is based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is tracked by the Bureau of Labor Statistics. The CPI-W measures changes in the prices of everyday expenses, such as housing, food, and transportation. 

To calculate the annual cost-of-living adjustment, the SSA compares the average CPI-W from the third quarter (July through September) of the current year with the third quarter of the year in which the last COLA was determined.

How much is the average monthly benefit?

• Social Security Disability Insurance: The SSDI average monthly payment is $1,636. The COLA increase will bring the average payment amount to $1,694 in 2027. 

• Supplemental Security Income: The average SSI payment is $739 and will increase to $765 in 2027.

• Retirement benefits: For retired workers, the average amount for monthly retirement benefits is $2,088. In 2027, the average will be $2,163.

The Department of Veterans Affairs (VA) also adjusts many benefits each year to match the Social Security COLA. Some VA benefits, like veterans pension, go up automatically. Others, including disability compensation, need Congress to approve the increase each year, which it typically does in the fall.

How do I find my 2027 benefit amount?

If you have a mySSA account, you can view your updated benefit amount online and sign up for alerts to see it sooner.

More on COLA:

What Social Security Disability Recipients Expect From the 2026 COLA

By Sarah Aitchison

2025 Social Security COLA Increase

By Sarah Aitchison