News Social Security Announces 3.6 Percent COLA for 2027

SSA has announced a 3.6 percent benefit increase for 2027, applying to Old-Age, Survivors, and Disability Insurance (OASDI) and to Supplemental Security Income (SSI). Retirement payments will rise by an average of $75 per month.

Nearly 72 million people receiving Social Security will see the cost-of-living adjustment (COLA) beginning in January 2027. Increased payments to approximately 7.3 million people receiving SSI begin December 31, 2026. Some people receive both.

Key dates and notices

People with a personal my Social Security account can view their COLA notice online starting in late November, up to three weeks before a paper notice would arrive. Account holders can also opt into text or email alerts when a new Message Center item posts.

Anyone without an account will need to create one and enroll in paperless notices by November 18 to view the COLA notice online. Those who do not enroll will receive the notice by mail in December.

The 2027 notice is a simplified one-page document using plain, personalized language, with exact dates and dollar amounts for the new payment and any deductions. For people enrolled in Medicare, the 2027 premium amount will be available through the Message Center starting in late November, with broader Medicare information at medicare.gov.

The COLA is set by the Social Security Act, which ties it to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Bureau of Labor Statistics. Full details and the 2027 fact sheet are at ssa.gov/cola.

What this means for your practice

A COLA is good news that creates work. More income is unambiguously better, but it moves a person’s numbers across several systems at once, and the systems do not adjust in sync.

Immediate action:

• November 18 is the date that matters. Anyone who wants to see their COLA notice online, rather than waiting for the December mail, needs an account and paperless enrollment before then. For people without a stable mailing address, this is not a convenience; it is the difference between knowing their new payment amount and not. Make account setup a priority item at every contact between now and mid-November.

Then plan for the ripple effects:

• Subsidized housing rent will be recalculated. For people in units where rent is set as a share of income, a COLA raises income, thereby increasing the tenant portion. The increase is partly absorbed before it is ever felt. Prepare people for that rather than letting it arrive as a surprise.
• Watch other program thresholds. SNAP allotments, Medicaid and Medicare Savings Program income limits, and Extra Help eligibility all interact with a higher monthly payment. Some of these limits update on a different schedule, which can create a temporary gap where income has risen but the corresponding limit has not.
• SSI resource limits do not move with the COLA. They remain $2,000 for an individual and $3,000 for a couple. Income goes up, but the resource ceiling stays where it is, which makes the resource conversation more important, not less.
• Check the 2027 figures before advising anyone about work. Substantial gainful activity amounts, trial work period thresholds, and the SSI federal benefit rate all change with the new year. 
• For people receiving SSDI, the Medicare Part B premium may absorb part of the increase. Premium information arrives through the Message Center in late November, so the net change is not knowable until then.

This is exactly what Income+ means in practice. A raise in one program is not the same as a raise in overall stability. The work is in seeing how the threads pull on each other and helping people land ahead rather than even.

Sources: Social Security Announces 3.6 Percent Benefit Increase for 2027