Social Security, SSI benefits set to rise 3.6% in 2027

Social Security and Supplemental Security Income benefits are set to increase 3.6% in 2027, up from the 2.8% adjustment for 2026. The Social Security Administration announced the change Oct. 14, saying it will apply to nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients.

The higher Social Security benefits are payable beginning in January 2027. Increased SSI payments are scheduled to begin Dec. 31, 2026. Some people receive both programs, so the two recipient counts overlap and should not be added together as if they represent separate people.

How the 2027 adjustment changes benefits

The annual cost-of-living adjustment, or COLA, is tied by law to the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W. SSA says the 2027 adjustment uses the increase in that index from the third quarter of 2025 through the third quarter of 2026. The percentage is determined under that formula rather than selected separately for each recipient.

SSA estimates that Social Security retirement benefits will increase by an average of $75 per month. That is an average for retirement benefits, not a guaranteed increase for any one person and not an average for SSI. The dollar change depends on an individual’s benefit amount.

The COLA is not the only change in SSA’s 2027 figures. The maximum amount of earnings subject to Social Security tax rises to $192,300, from $184,500 in 2026. The maximum federal SSI payment for an eligible individual increases to $1,029 a month, from $994. That figure is a program maximum, not a promise that every recipient will receive that amount; individual SSI payments can differ.

When higher payments and notices arrive

Social Security’s increase applies to benefits payable in January 2027. SSI’s first increased payment is scheduled for Dec. 31, 2026, an early payment for January because Jan. 1 is a holiday. The Dec. 31 date does not mean the increased SSI amount applies to December’s regular benefit month.

SSA says COLA notices will be available online in late November, with paper notices scheduled for December. People who do not already have a my Social Security account and want to receive an online notice must create an account and enroll in paperless notices by Nov. 18. People who already have an account can view their notice online.

The 3.6% adjustment does not by itself establish each beneficiary’s final net payment. SSA’s Oct. 14 announcement did not include 2027 Medicare premium amounts, which can affect the net Social Security payment some beneficiaries receive.

The Associated Press reported criticism of the adjustment from Social Security Works president Nancy Altman, who said it would not keep up with prices. AP also reported concerns from beneficiaries it interviewed about whether the increase would cover rising costs. Those are an advocate’s assessment and individual experiences, not a measure of how the adjustment compares with every recipient’s expenses.