CA, US & World
Social Security Benefits to Increase 3.6% in 2027, Adding About $75 a Month
Social Security recipients will see their monthly benefits increase by 3.6% in 2027, the Social Security Administration announced Wednesday.
The adjustment will raise the average monthly retirement benefit by about $75, bringing it to an estimated $2,170 beginning in January. The increase is the largest since 2023.
Nearly 72 million Americans receive Social Security benefits, including retirees, people with disabilities and others. Approximately 7.3 million people who receive Supplemental Security Income, or SSI, will also see their payments increase by 3.6%.
The annual cost-of-living adjustment, known as COLA, is intended to help beneficiaries keep pace with inflation. However, many older Americans say the increases have not kept up with their actual expenses, particularly for housing, health care and everyday necessities.
Inflation has risen this year amid the ongoing war with Iran, which has driven up gasoline and diesel prices. The Consumer Price Index increased 3.7% in September compared with a year earlier. Social Security recipients received a 2.8% adjustment for 2026.
The 2027 increase will also be partly offset by higher Medicare Part B premiums. The monthly premium is expected to rise to $209.50 in 2027, an increase of $6.60 from this year, according to Medicare’s most recent trustees report. The official premium amount is expected to be announced in the coming weeks.
Advocates for older Americans say the formula used to calculate the annual adjustment does not fully reflect retirees’ spending patterns. Seniors typically devote a larger share of their income to health care, housing and other necessities.
Social Security benefits have lost an estimated 13.7% of their purchasing power over the past decade, according to an analysis by The Senior Citizens League. The group estimates the average beneficiary would need an increase of nearly $296 per month to recover that lost buying power.
Others argue that changes to the annual adjustment could help address Social Security’s long-term financial challenges. The Committee for a Responsible Federal Budget has called for lawmakers to consider reforms, warning that the program’s trust fund is projected to be depleted in six years. Without legislative action, benefits could face a significant reduction.
For millions of Americans who rely on Social Security as a primary source of retirement income, the 2027 increase will provide additional money each month, though rising expenses may limit how much relief beneficiaries ultimately feel.
By: CNN Newsource
October 14, 2026
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