The Social Security Administration announced a 3.6 percent benefit increase for nearly 72 million beneficiaries, beginning in January 2027. On average, Social Security retirement benefits will increase by $75 per month.
The adjustment, called a cost-of-living adjustment (COLA), affects Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI). Increased SSI payments to about 7.3 million people will begin on December 31, 2026, the agency said.
The Social Security Administration will provide beneficiaries with simplified COLA notices beginning in late November, showing exact dates and dollar amounts of new benefit amounts and any deductions. Beneficiaries with my Social Security accounts can view notices online, while others will receive them by mail in December.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Department of Labor's Bureau of Labor Statistics.