The 2027 Social Security COLA is 3.6%, the Social Security Administration (SSA) announced Oct. 14. Benefits rise by that amount in January. It’s the biggest raise since 2023’s 8.7% jump, and a clear step up from this year’s 2.8%. For the average retired worker, the monthly check goes from about $2,095 to $2,170.
COLA stands for cost-of-living adjustment, the annual increase Social Security applies to keep benefits in step with inflation. Every retiree, survivor, and disabled worker on Social Security gets the same percentage increase, added automatically each January.
Close to 72 million Social Security beneficiaries get the raise starting in January. About 7.3 million people on Supplemental Security Income (SSI) see it in the payment dated Dec. 31, 2026. Here’s what it means for your check and your Medicare costs, and how to build it into your plan.
The 2027 COLA Came In at 3.6%
SSA bases the COLA on the CPI-W, which averaged 328.746 in the third quarter of 2026. That’s up 3.6% from 317.265 a year earlier. The final number matches the Senior Citizens League’s late-summer estimate and runs a tenth of a point above AARP’s 3.5% projection.
It also beats the average Social Security COLA of the last 20 years, which has run about 2.6%.
The 3.6% Raise Adds About $75 to the Average Check
The average retired worker will collect about $2,170 a month starting in January, up from $2,095, according to SSA estimates. Couples, survivors, and disabled workers see gains in the same proportion.
| Beneficiary | Before the COLA | After the COLA | Monthly increase |
|---|---|---|---|
| All retired workers | $2,095 | $2,170 | $75 |
| Aged couple, both receiving benefits | $3,238 | $3,355 | $117 |
| Aged widow(er) alone | $1,936 | $2,005 | $69 |
| All disabled workers | $1,642 | $1,701 | $59 |
Source: Social Security Administration, 2027 COLA fact sheet. Estimated average monthly benefits for January 2027.
Your own increase will look different. COLA is a percentage of your benefit, so a bigger starting check gets a bigger raise in dollar terms. Say your benefit is $1,500. A 3.6% raise adds about $54. At $2,500, it’s closer to $90.
Medicare Part B premiums rise each January too. The 2026 standard premium is $202.90. The 2026 Medicare Trustees Report projects the 2027 premium at $209.50, up $6.60, and CMS sets the final number in November. At that level, the premium increase would claim about 9% of the average $75 raise. Higher earners subject to IRMAA surcharges pay more on top of that.
Other Social Security Numbers Changing in 2027
The COLA announcement also updates the earnings limits, the payroll tax cap, and SSI payments. These are the 2027 figures that touch most retirement plans:
| Figure | 2026 | 2027 |
|---|---|---|
| Maximum earnings subject to Social Security tax | $184,500 | $192,300 |
| Earnings test, under full retirement age | $24,480 a year | $25,560 a year |
| Earnings test, year you reach full retirement age | $65,160 a year | $67,920 a year |
| Earnings needed for one work credit | $1,890 | $1,970 |
| SSI federal payment, individual | $994 a month | $1,029 a month |
| SSI federal payment, couple | $1,491 a month | $1,544 a month |
Source: Social Security Administration, 2027 COLA fact sheet.
If you collect benefits before full retirement age and keep working, SSA withholds $1 for every $2 you earn above the limit. In the year you reach full retirement age, it’s $1 for every $3. Withheld benefits come back to you: SSA raises your check at full retirement age to account for them. Our guide to Social Security and working walks through the details.
The higher wage cap matters if you earn more than $184,500. You’ll pay the 6.2% Social Security tax on up to $7,800 more in wages, or about $484.
Medicare Open Enrollment Opens the Day After the COLA Announcement
Medicare Open Enrollment runs Oct. 15 through Dec. 7 every year. This year it opens the day after SSA’s announcement. You’ll have the official 3.6% in hand before you compare 2027 plans.
Medicare Part B premiums come straight out of your Social Security check, so a premium increase eats directly into whatever the COLA adds. A plan comparison that only looks at premiums misses half the picture. Your real cost is the premium increase weighed against the raise that’s covering part of it.
The one number still missing is the 2027 Part B premium. Use the $209.50 projection for now and swap in the final figure when CMS publishes it in November.
If you’re updating your retirement budget for 2027, build in the 3.6% raise and the higher premium together. The net change is what lands in your account.
The 3.6% Raise Beats the 20-Year Average COLA of 2.6%
The 3.6% raise beats the 10-year, 20-year, and 30-year averages below, though not the last 5 years or the full run back to 1975. All windows run through 2026.
| Window | Average COLA |
|---|---|
| Last 5 years | 4.6% |
| Last 10 years | 3.1% |
| Last 20 years | 2.6% |
| Last 30 years | 2.5% |
| Since 1975 | 3.7% |
Both of the numbers it doesn’t beat get pulled up by outlier stretches: the 2022 and 2023 inflation spikes, and the double-digit increases of the late 1970s and early 1980s. Three of the last 17 years brought no COLA at all: 2010, 2011, and 2016.
The Formula That Sets COLA Penalizes How Retirees Spend
The formula itself hasn’t changed since 1975. Each COLA compares average prices across July, August, and September against the same three months a year earlier, using the CPI-W: the Consumer Price Index for Urban Wage Earners and Clerical Workers. That percentage increase becomes the COLA.
The Social Security Act requires this specific index, and CPI-W tracks what working-age urban households spend. Retirees spend on different things. Healthcare eats up a bigger share of a retiree’s budget than it does for most workers. Healthcare costs are projected to climb 5.8% a year long term, according to HealthView Services. Medicare Part B premiums deducted from Social Security alone rose 9.7% in 2026.
An alternative index exists. The R-CPI-E tracks prices for people 62 and older. It’s existed since the Older Americans Act of 1987 required research into it. Congress has never adopted it, so CPI-W remains the standard even though it wasn’t built with retirees in mind.
If your own costs on healthcare and housing run higher than the COLA suggests, plan for that difference now.
Build the 3.6% COLA Into Your Plan Now
Running your numbers by hand gets complicated fast. Medicare premiums, taxes on your benefit, and how a COLA ripples through decades of withdrawals all factor in. Most people don’t have a clean way to see all of that at once.
The Boldin Planner lets you set your own COLA assumption and see how it moves your entire retirement picture. Start with 3.6% for 2027. Then test a lower long-term rate to see how much room your plan has if future raises run closer to the 20-year average. Your claiming age sets the base each raise builds on, so your Social Security claiming strategy and your COLA assumption work together.
FAQ: Social Security COLA 2027
What is the Social Security COLA for 2027?
The 2027 Social Security COLA is 3.6%, announced by the Social Security Administration on Oct. 14, 2026. It reflects the rise in the CPI-W from the third quarter of 2025 to the third quarter of 2026. The increase raises the average retired worker’s benefit by about $75 a month, to $2,170.
When does the 2027 Social Security COLA take effect?
The 2027 Social Security COLA takes effect with the January 2027 payment. SSI recipients see it in the payment dated Dec. 31, 2026. You can view your new benefit amount in your my Social Security account starting in late November. You need an account by Nov. 18 to see the notice online. Paper notices go out in December.
How much will the 3.6% COLA add to my monthly check?
The 3.6% COLA applies as a percentage of your own benefit, so your increase depends on your starting check. Multiply your monthly benefit by 0.036 to find it. A $1,800 benefit gains about $65 a month. A $2,400 benefit gains about $86. Medicare Part B premium increases can reduce what reaches your account.
Does the Social Security COLA apply to people who haven’t claimed benefits yet?
Social Security applies COLA increases to your benefit starting the year you turn 62, even if you haven’t filed yet. Before age 62, your earnings record grows with wage indexing instead. Once you hit 62, COLA increases apply each year until you claim. This holds whether you claim at 62, at full retirement age, or at 70.
How much can I earn while collecting Social Security in 2027?
In 2027, you can earn up to $25,560 while collecting Social Security before full retirement age. Above that, SSA withholds $1 in benefits for every $2 you earn. In the year you reach full retirement age, the limit rises to $67,920, and SSA withholds $1 for every $3 above it. Once you reach full retirement age, there’s no limit.
Will a 3.6% Social Security COLA be enough to keep up with rising costs?
For many retirees, a 3.6% Social Security COLA won’t fully close the difference between fixed income and rising healthcare or housing costs. The COLA formula tracks a broader price index than what retirees spend day to day. Whether it’s enough for you depends on your own spending mix. Check that against your own budget instead of the national average.
