--- title: 'Social Security Recipients to See Their Biggest Raise in Years: 2027''s COLA Will Be 3.6%' description: The 2027 COLA, tied for the fifth-largest in 35 years, will increase the average monthly Social Security payment by $75. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 609 covers: - Retirement - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Shopping - Taxes social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 published: '2026-10-14T13:37:57.000Z' modified: '2026-10-14T13:38:52.000Z' section: Retirement tags: - News word_count: 896 canonical: https://money.com/social-security-cola-2027-announcement/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![COLA and social security form](https://img.money.com/2026/10/News-COLA_Announcement-social-security-4.jpg) The Social Security Administration has announced a 3.6% cost-of-living adjustment to the [benefits](https://money.com/social-security-check-this-month/) that retirees, spouses and disabled Americans will receive in 2027. The adjustment, referred to as the COLA, will provide an average increase of $75 to the monthly checks of [76 million](https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/) recipients, according to the [announcement](https://www.ssa.gov/news/en/press/releases/2026-10-14.html) Wednesday. It is tied for the fifth-largest adjustment in the past 35 years. The 2027 COLA beats the [2.8% increase](https://money.com/social-security-cola-2026-announced/) recipients got for 2026, but retirees don't necessarily see it as getting a "raise." The COLA is meant to help benefits maintain their purchasing power as prices rise. Social Security beneficiaries had strong reason to expect a larger-than-usual COLA for 2027 given the [flare-up in inflation](https://money.com/cola-prediction-2027-social-security/) this year, especially at the gas pump. Airfare and fuel oil costs have spiked, in part due to global conflicts including the war in Iran, and retirees are also facing [rising costs](https://www.bls.gov/news.release/cpi.nr0.htm) for [healthcare](https://money.com/health-insurance-costs-increase-2027/), public transportation, electronics and grocery staples like beef and fish. So will the 3.6% increase be enough? Here's what you need to know about the 2027 Social Security COLA: ## How was the Social Security COLA calculated? The COLA is calculated using government inflation data for the third quarter, which spans from July to September. The consumer price index for urban wage earners and clerical workers, or the CPI-W, showed 3.9% annual inflation in the September update released Wednesday. During those months, average gas prices ranged from around $3.80 to $4.50 per gallon, driving much of the uptick in inflation. The calculation is a relatively simple comparison of third-quarter average CPI-W readings year-over-year. The CPI-W was 327.104 in July, 328.481 in August and 330.654 in September. The average for those months (328.746) compares to last year's third-quarter average of 317.265. The COLA is that difference (11.482), expressed as a percentage (3.6%) of last year's average. ## How much will Social Security benefits increase in 2027? The average Social Security retirement payment will rise from $2,095 to $2,170, an increase of $75, according to a [fact sheet](https://www.ssa.gov/news/en/cola/factsheets/2027.html) published Wednesday. For comparison, the 2026 COLA delivered an average Social Security retirement payment increase of $56. On Jan. 1, an increase in Medicare Part B premiums will also take effect for millions of retirees, and these premiums are usually withheld from Social Security benefits. The standard Medicare Part B premium is $202.90 per month and could rise to $209.50 next year, according to a projection in the 2026 Medicare Trustees Report. The premium adjustment is typically announced in November. ## Will the 2027 COLA be enough? In a [CNBC interview](https://www.cnbc.com/video/2026/10/12/watch-cnbcs-full-interview-with-irs-chief-frank-bisignano.html) Monday, Social Security Commissioner Frank Bisignano was asked whether the increase will be enough for beneficiaries facing rising costs for groceries, healthcare and energy. Bisignano argued that the COLA is a sign the Trump administration is keeping its promises on Social Security and said Wednesday would be a "good day" for beneficiaries. "The promise was to protect and preserve, and we've been running that platform since I've been here with the president. And we're going to do it Wednesday — there'll be a cost-of-living adjustment," he said, adding that he received thank-you notes for the COLA last year. "People are very, very grateful for it, and they look forward to it." The COLA is automatic, and the same formula has been used for over 40 years. Advocacy groups representing older Americans, like The Senior Citizens League, say retirees are dissatisfied with recent COLAs and continue to worry about their ability to afford climbing household costs. "When prices rise, they don’t rise next January when your benefit check goes up. They rise right now," Shannon Benton, executive director of the group, said in a [recent news release](https://seniorsleague.org/tscl-predicts-cola-at-3-5-with-one-month-to-announcement/). Social Security beneficiaries also remain concerned about the inflationary effects of the Trump administration's trade policies. New York Fed researchers [recently estimated](https://libertystreeteconomics.newyorkfed.org/2026/10/how-fast-do-tariffs-pass-through-into-consumer-prices/) that consumer goods prices are about 2% higher than they would have been without tariffs. ## Who gets the Social Security COLA When the 3.6% COLA kicks in, it will boost benefits for everyone currently collecting Social Security. That's about [58 million people](https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/) who receive retirement benefits, 5.8 million who receive survivor benefits and 8 million beneficiaries who get disability insurance. The COLA also applies to Supplemental Security Income, or SSI. About 7.3 million people receive SSI, which is intended to help adults and children with little to no income and resources who are blind, disabled, or age 65 and up. (Many of these beneficiaries receive SSI and Social Security benefits.) ## When will the 2027 COLA take effect? Social Security retirement benefits are paid monthly in batches on the third day of the month and the second, third and fourth Wednesdays. The payment schedule is based on birthdates. The 2027 COLA will take effect on the last day of 2026. Some payments are scheduled to go out Dec. 31 because Jan. 1 and Jan. 3 are a federal holiday and a Sunday, respectively. Most retirees will notice the COLA increase later in the month in their Jan. 13, Jan. 20 or Jan. 27 payments. The full 2027 Social Security payment schedule can be found on the Social Security Administration's [website](https://www.ssa.gov/pubs/EN-05-10031-2027.pdf). The Social Security Administration said it will send out notices with new benefit amounts starting in December. Beneficiaries with a "my Social Security" account will be able to access their COLA notice online and can opt in to receive text or email alerts when it's available. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/social-security-cola-2027-announcement/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Retirement", "item": "https://money.com/retirement/" }, { "@type": "ListItem", "position": 3, "name": "Social Security", "item": "https://money.com/social-security/" }, { "@type": "ListItem", "position": 4, "name": "Social Security Recipients to See Their Biggest Raise in Years: 2027's COLA Will Be 3.6%" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/social-security-cola-2027-announcement/#webpage", "url": "https://money.com/social-security-cola-2027-announcement/", "name": "Social Security Recipients to See Their Biggest Raise in Years: 2027's COLA Will Be 3.6%", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-10-14T13:37:57.000Z", "mainEntity": { "@id": "https://money.com/social-security-cola-2027-announcement/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/social-security-cola-2027-announcement/#breadcrumb" }, "dateModified": "2026-10-14T13:38:52.000Z" }, { "@type": "NewsArticle", "headline": "Social Security Recipients to See Their Biggest Raise in Years: 2027's COLA Will Be 3.6%", "articleSection": "Retirement", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/10/News-COLA_Announcement-social-security-4.jpg", "width": 2880, "height": 1920, "caption": "News-COLA_Announcement-social-security-4" } ], "author": [ { "@type": "Person", "name": "Pete Grieve", "url": "https://money.com/author/pete-grieve/", "@id": "https://money.com/author/pete-grieve/#author", "description": "Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market.", "image": "https://img.money.com/2023/02/peter.png?w=350&h=430&crop=1", "email": "peter.grieve@money.com", "jobTitle": "Lead News Reporter", "alumniOf": "University of Chicago, BA Political Science", "sameAs": [ "https://twitter.com/pete_grieve", "https://linkedin.com/in/pete-grieve-b5aa02138", "https://www.facebook.com/petegrieve4" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2026-10-14T13:37:57.000Z", "description": "The 2027 COLA, tied for the fifth-largest in 35 years, will increase the average monthly Social Security payment by $75.", "abstract": "The 2027 COLA, tied for the fifth-largest in 35 years, will increase the average monthly Social Security payment by $75.", "@id": "https://money.com/social-security-cola-2027-announcement/", "inLanguage": "en-US", "dateModified": "2026-10-14T13:38:52.000Z", "wordCount": 896, "keywords": [ "News" ], "about": [ { "@type": "Thing", "name": "Retirement", "sameAs": [ "https://en.wikipedia.org/wiki/Retirement" ] }, { "@type": "Thing", "name": "Social Security (United States)", "sameAs": [ "https://en.wikipedia.org/wiki/Social_Security_(United_States)" ] } ] } ] } ```