The Social Security Administration’s 2027 COLA is official. On Wednesday, October 14, the SSA announced a 3.6 percent cost-of-living adjustment for 2027, released alongside the September inflation report. The 2027 Social Security raise will reach roughly 76 million Americans who receive Social Security benefits or Supplemental Security Income (SSI).

The 2027 COLA increase is the biggest since the 8.7% jump of 2023 and a clear step up from 2026’s 2.8%.

Energy prices tied to the war with Iran have pushed inflation higher, and the Social Security inflation adjustment for 2027 is designed to track that kind of pressure on the cost of living.

What is the Social Security COLA for 2027?

The 2027 Social Security COLA percentage is 3.6%. The SSA calculates the cost-of-living adjustment by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September 2026 with the same period in 2025.

The adjustment applies automatically to retirement, survivor, and disability benefits, as well as SSI. Beneficiaries don’t need to apply for the 2027 Social Security benefit increase.

2027 Social Security benefit increase: upcoming payment amounts

According to SSA estimates, the 2027 Social Security COLA lifts the average retired worker’s monthly benefit by about $75, from roughly $2,095 to $2,170. To estimate your own Social Security cost-of-living increase for 2027, multiply your gross monthly benefit (before Medicare deductions) by 1.036.

The SSA COLA 2027 increase begins with January 2027 payments for nearly 72 million Social Security beneficiaries. Payments follow the usual Wednesday schedule based on birth date: January 13, 20, and 27. SSA mails personalized COLA notices in early December, and you can view your exact 2027 amount in your my Social Security account.

SSI: 2027 payment amounts

About 7.3 million SSI recipients will receive the cost-of-living raise first, on December 31, 2026, because January 1 is a federal holiday. The maximum federal SSI payment rises to:

• Individual: $1,029 a month, up from $994
• Couple: $1,544 a month, up from $1,491

Other Social Security Administration 2027 adjustments

Alongside the COLA, the SSA updated several wage-linked figures for 2027:

• Taxable maximum: Earnings subject to the 6.2% Social Security payroll tax rise to $192,300, up from $184,500.
• Earnings test (under full retirement age): $25,560. SSA withholds $1 for every $2 earned above that.
• Earnings test (year you reach full retirement age): $67,920. SSA withholds $1 for every $3 above that, until the month you reach full retirement age.

2027 VA disability rates increase: 3.6% COLA for veterans

The VA COLA increase for 2027 matches Social Security’s, because federal law ties VA disability compensation to the Social Security cost-of-living adjustment. That means a 3.6% VA disability pay raise, taking effect December 1, 2026, with the first higher 2027 VA disability payment arriving around December 31.

One procedural step remains. Congress must pass the annual Veterans’ Compensation Cost-of-Living Adjustment Act before the VA publishes official 2027 VA disability rates. In each of the past two years, the law was signed on November 25. The figures below apply the 3.6% 2027 COLA increase to the VA’s official 2026 rates.

2027 VA disability rates increase chart (estimated): veteran alone, no dependents

At a 100% rating, the 2027 VA disability pay increase works out to about $48,964 a year in tax-free compensation, up roughly $1,700. The same increase applies to TDIU, Special Monthly Compensation, Dependency and Indemnity Compensation (DIC), VA pension, and military retired pay.

Medicare Part B premium 2027: how much of your raise Medicare takes

Most retirees have their Medicare Part B premium deducted directly from their Social Security check. The Medicare trustees project the standard premium will rise from $ 202.90 in 2026 to $209.50 a month in 2027, a $ 6.60 increase. The Part B deductible is projected to rise from $283 to $292.

That increase is much smaller than the nearly $18 jump retirees absorbed this year. If the projection holds, it would be the first time since 2023 that the Social Security COLA outpaces the percentage rise in Part B premiums. For the average retiree, the net gain would be roughly $68 a month.

These figures are still projections. The Centers for Medicare & Medicaid Services (CMS) announces the official Medicare Part B premium for 2027 and the income-based IRMAA surcharges in November. Some private forecasters expect a premium closer to $216.

Social Security benefit cuts in 2032: what the trustees warn

The 2027 raise arrives under a shadow. The 2026 Social Security Trustees Report projects that the Old-Age and Survivors Insurance (OASI) trust fund, which pays retirement and survivor benefits, will exhaust its reserves in the fourth quarter of 2032, one quarter earlier than last year’s estimate.

If Congress doesn’t act, incoming payroll taxes would cover only about 78% of scheduled retirement benefits, cutting Social Security benefits across the board by roughly 22% beginning in 2032. The disability trust fund remains solvent throughout the 75-year projection window. If lawmakers combined the two funds, reserves would last until the third quarter of 2034.

These cuts are not automatic or imminent. The trustees have urged Congress to act soon so that any changes can be phased in gradually.

Frank Bisignano’s Social Security prediction

Frank Bisignano is the Commissioner of the Social Security Administration and also serves as CEO of the IRS. Ahead of the announcement, he called COLA day a “good day” for retirees. Asked about the program’s long-term future, he told CNBC that the 90-year-old program will last another 90 years.

Bisignano has pointed to operational overhauls and artificial intelligence as part of the agency’s path forward. However, closing the 2032 funding gap ultimately rests with Congress.

Social Security inflation impact on seniors

A 3.6% Social Security COLA is real money: about $900 a year for the average retiree and roughly $1,700 for a veteran with a 100% disability rating. But with food, energy, and healthcare costs still climbing, many seniors say the cost-of-living adjustment won’t feel like a raise. In an AARP survey of Social Security recipients conducted before the announcement, 80% said a 3.5% increase wouldn't be enough to keep up with rising prices.

FAQ: Social Security COLA 2027

What is the latest news on the Social Security payment increase and future budget cuts?
The SSA announced a 3.6% COLA for 2027 on October 14, 2026. Separately, the trustees project the retirement trust fund will run out of reserves in late 2032. Without action from Congress, that would lead to roughly a 22% cut in retirement benefits.

When does the 2027 COLA increase start?
Social Security beneficiaries see the cost-of-living raise in January 2027. SSI recipients receive it on December 31, 2026.

Is the 2027 COLA for VA disability also 3.6%?
Yes. VA disability rates for 2027 rise by the same 3.6%, effective December 1, 2026, pending the annual congressional COLA act.

What will 100% VA disability pay in 2027?
About $4,080.37 a month for a veteran with no dependents, up from $3,938.58.

What is the Medicare Part B premium for 2027?
The trustees project $209.50 a month. CMS will announce the official figure in November.

How do I see my exact 2027 Social Security amount?
Check your My Social Security account online or watch for SSA’s COLA notice in early December.