The Social Security Administration announced its projected annual cost-of-living adjustment for 2027 Wednesday, with some recipients complaining the increase is not enough to offset soaring prices.
So how much is it and what will it mean for checks?
Here’s a breakdown:
What is the COLA for 2027?
Benefits for older adults and people with disabilities will go up by 3.6% in 2027.
The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary. That is set to increase to $192,300 in 2027, from $184,500 in 2026.
“The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation,” the administration’s website states.
The announcement comes as inflation adds pressure on household budgets and businesses and as midterm elections are weeks away.
The agency’s commissioner, Frank Bisignano, said in a statement that the adjustment will give recipients “greater financial stability.”
Still, the increase comes as the Bureau of Labor Statistics’ released inflation data for September 2026, which showed the consumer price index rose 3.7% last month.
How much will the adjustment mean per month?
The adjustment translates to $75 extra per month for the 73 million people who receive monthly Social Security benefits and nearly 7.5 million beneficiaries who get Supplemental Security Income.
To check your individual amount, notices will appear in Social Security accounts starting in late November and paper notices will go out about three weeks later.
“Account holders can also choose to receive text or email alerts when a new message, including their COLA notice, is available in their personal my Social Security account’s Message Center,” the administration’s website states. “Individuals who do not have a personal account will need to create one and enroll in paperless notices by November 18 to see their COLA notice online.”
Estimated Average Monthly Social Security Benefits Payable in January 2027 Before 3.6% COLAAfter 3.6% COLAAll Retired Workers$2,095$2,170Aged Couple, Both Receiving Benefits$3,238$3,355Widowed Mother and Two Children$3,932$4,074Aged Widow(er) Alone$1,936$2,005Disabled Worker, Spouse and One or More Children$2,970$3,077All Disabled Workers$1,642$1,701When will the COLA adjustments begin?
The adjusted payments will not begin until January 2027.
How is the COLA calculated?
According to the agency, the cost-of-living adjustment “is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year.”
In other words, the COLA is automatically applied to benefits to help keep up with inflation.
How does it compare to inflation?
Some older adults feel the increase is a drop in the bucket as inflation has eaten away at monthly savings. The government reported last month that inflation accelerated in August as gas prices spiked in the wake of renewed fighting between the United States and Iran.
Lorrie Ufkin, a 71-year-old retiree who lives outside Rochester, Minnesota, said the COLA will not put a dent in her healthcare costs, which are set to increase after the Trump administration concludes at year’s end a temporary Medicare Part D subsidy program that has helped offset premiums. Ufkin said that her premiums and drug cost are expected to rise, although the Centers for Medicare & Medicaid Services has projected a modest increase for most people.
The COLA “doesn’t even meet what they’re going to do for changes to Medicare,” she told The Associated Press.
She said one of the medications both she and her husband take will go from $11 per month for each prescription, to $200 per month, after Republican administration changes made to older Americans’ healthcare programs. She said that was “catastrophic.”
Senior advocacy groups say the COLA is a strong reminder of the financial straits of many older people.
“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 critically important,” said AARP CEO Dr. Myechia Minter-Jordan.
Jaime Jakubczak, a 68-year-old resident of Buffalo, New York who retired early at 55, has recently gone back to work to make ends meet, specifically to afford rising property taxes. He said the COLA is insufficient because it is offset by high inflation and a proposed 3.9% property tax increase in his town.
Jakubczak called the 3.6% cost-of-living adjustment “a pittance,” given how high food, healthcare and gasoline prices have become across the country.
“We were getting ahead a little bit with the COLA based on inflation, but the inflation is so high that it doesn’t offset what our COLA allowance is,” he said.
Most older adults believe the COLA isn’t adequately keeping up with inflation, according to an AARP poll from September. That poll found that about three-quarters of those 50 or older disagreed with the idea that a 3.5% COLA in 2027 would be enough to keep up with rising prices.
What else to know about Social Security
The Social Security Administration faces a looming bankruptcy date if a funding shortfall is not addressed by Congress.
The June 2026 Social Security and Medicare trustees’ report states that Social Security’s combined trust funds — which cover old age and disability recipients — will be unable to pay full benefits beginning in 2034. After that, incoming revenue would cover about 83% of scheduled benefits.
While a permanent solution for shoring up the benefits program has not been passed into law, lawmakers on the Hill have called for new measures to replenish the trust funds.
Sens. Elizabeth Warren, D-Mass., and Bernie Moreno, R-Ohio, in June proposed lifting the Social Security payroll tax cap, which is a maximum amount of earnings taxable. Treating all income the same “would generate substantial revenue that would extend the solvency of Social Security for another generation,” they wrote in The New York Times.
The move is controversial because Republicans have traditionally criticized calls to raise taxes on the wealthy.
The Peterson Foundation estimates that lifting the payroll tax cap would add roughly $3 trillion into the program over the next 10 years.
Both the Trump and Biden administrations signed into law new benefits for retirees, which boosted their finances, but simultaneously accelerated the insolvency of the old-age benefits program.
The Trump administration, as part of Republicans’ tax and spending bill, gave a temporary tax deduction for people 65 and over, which applies to all income — not just Social Security. But those who aren’t able to claim the deduction include the lowest-income older adults who already don’t pay taxes on Social Security, those who choose to claim their benefits before they reach 65 and those above a defined income threshold.
Additionally, Democratic President Joe Biden in 2024 repealed two federal policies — the Windfall Elimination Provision and the Government Pension Offset — that previously limited Social Security payouts for roughly 2.8 million people, including largely former public workers.
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