Social Security Benefits to Increase by 3.6% in 2027

The Social Security Administration (SSA) has announced a 3.6% increase in Social Security and SSI benefits for 2027, affecting more than 72 million individuals. This adjustment is the largest since 2023 and translates to an average monthly increase of $75 for retirees.

The Committee for a Responsible Federal Budget estimates that this increase will amount to approximately $900 annually, with higher earners potentially seeing increases exceeding $2,200. The adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, reflecting inflation trends from July to September.

Payments will begin to reflect this increase on December 31, 2026, for SSI recipients, while most Social Security beneficiaries will see the adjustment starting January 1, 2027. The increase will also impact Medicare Part B premiums, which are projected to rise to $209.50. Advocacy groups have expressed concerns that the COLA does not fully address the rising costs faced by retirees, particularly in healthcare and housing.