Social Security COLA 2027: 3.6% Raise, Dates and Medicare Impact
SSA announced a 3.6% COLA for 2027. Here is what it means in dollars, when it arrives, how to check your new amount and what Medicare Part B may take.
The Social Security cost-of-living adjustment (COLA) for 2027 is 3.6%. The Social Security Administration announced it on October 14, 2026, and it applies to Social Security benefits paid starting in January 2027 and to SSI payments starting December 31, 2026. This guide covers what the increase means in dollars, exactly when it hits your account, how to see your new amount before the paper notice arrives, and how the 2027 Medicare Part B premium could reduce the raise you actually see. Updated October 2026.
Key Takeaways
- The 2027 COLA is 3.6%, the largest increase since the 8.7% COLA for 2023. It follows 3.2% for 2024, 2.5% for 2025 and 2.8% for 2026.
- Nearly 72 million Social Security beneficiaries get the raise starting with January 2027 payments; about 7.3 million SSI recipients get it starting December 31, 2026.
- SSA says the average retirement benefit rises by about $75 a month.
- You can see your COLA notice online in your my Social Security Message Center from late November; to get it online you need an account and paperless notices set up by November 18, 2026.
- The Medicare Trustees projected a 2027 Part B premium of $209.50 a month, up from $202.90 in 2026. The official figure comes from CMS, usually in November.
Social Security COLA 2027: the quick answer
| Item | 2027 figure |
|---|---|
| COLA for 2027 | 3.6% |
| Announced | Wednesday, October 14, 2026 |
| First Social Security payment with the raise | January 2027 (some groups receive it on Thursday, December 31, 2026 because of the New Year’s Day holiday; see the schedule below) |
| First SSI payment with the raise | December 31, 2026 |
| Average retirement benefit change | About +$75 per month |
| People affected | About 76 million in total: nearly 72 million Social Security beneficiaries and about 7.3 million SSI recipients (some receive both) |
| Online COLA notice | From late November 2026 in my Social Security |
| Paper COLA notice | Mailed in December 2026 to people not enrolled in paperless notices |
These figures come from SSA’s October 14 announcement, which is also published as an official SSA bulletin. Rules and amounts can be revised, so check ssa.gov or your own notice for figures that apply to you.
How the COLA is calculated
The COLA is set by law. SSA compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August and September of this year with the same three months of the year the last COLA was set. The percentage increase, rounded to the nearest tenth of a percent, becomes the COLA. If there is no increase, there is no COLA.
A few points that often confuse people:
- It is not tied to your personal costs. CPI-W tracks prices for working households. Retirees often spend more on health care and housing, so your actual cost increases may be higher or lower than 3.6%.
- It is automatic. You do not apply for the COLA. If you receive benefits, it is added for you.
- It applies to the December benefit. Technically the COLA is effective for benefits for December 2026, which are paid in January 2027. That is why the first raised check arrives in January.
Recent COLAs for comparison
| Benefit year | COLA |
|---|---|
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
| 2027 | 3.6% |
The 2027 increase is the biggest in four years but well below the 2023 adjustment, which followed the inflation spike of 2022. Forecasters, including the Senior Citizens League and AARP, had projected about 3.6% in the weeks before the announcement, so the final number was close to expectations.
Does the COLA make more of my benefit taxable?
It can. Up to 85% of Social Security benefits can be subject to federal income tax, depending on your “combined income”, and the thresholds used for that test are not adjusted for inflation. A higher benefit, plus other income such as required minimum distributions, can push more of your benefit over those thresholds. If you have federal tax withheld from your benefits, you can change the withholding rate with IRS Form W-4V. A tax professional can tell you whether that makes sense for you.
What 3.6% means in dollars
To estimate your own raise, multiply your current monthly benefit (before Medicare deductions) by 0.036. SSA rounds benefit amounts down to the next lower dime when it applies a COLA, so your exact figure may be a few cents lower than simple math suggests.
| Current monthly benefit (gross) | Approximate increase at 3.6% | Approximate new benefit |
|---|---|---|
| $1,200 | +$43.20 | $1,243.20 |
| $1,600 | +$57.60 | $1,657.60 |
| $2,000 | +$72.00 | $2,072.00 |
| $2,500 | +$90.00 | $2,590.00 |
| $3,000 | +$108.00 | $3,108.00 |
| $4,000 | +$144.00 | $4,144.00 |
These are illustrative calculations, not SSA figures for any individual. Your COLA notice will show your exact new gross benefit, any deductions, and your net payment.
For a sense of the average: the Journal of Accountancy’s summary of SSA’s 2027 figures reports that the average retirement benefit rises by about $75 a month, to about $2,170.
When the 2027 increase arrives: payment schedule
Your payment date depends on when you started benefits and your birthday. Because January 1, 2027 is a federal holiday (and a Friday), several groups receive their January payment early, on Thursday, December 31, 2026.
| Who you are | When the first increased payment arrives |
|---|---|
| SSI recipients | Thursday, December 31, 2026 (January 2027 payment) |
| Started Social Security before May 1997, or receive both Social Security and SSI | Normally the 3rd of the month; for January 2027, expected Thursday, December 31, 2026 |
| Birthday on the 1st to 10th | Wednesday, January 13, 2027 |
| Birthday on the 11th to 20th | Wednesday, January 20, 2027 |
| Birthday on the 21st to 31st | Wednesday, January 27, 2027 |
If your payment is early because of a holiday, it is not an extra payment. It is your January money arriving a day or two ahead of schedule, so budget for a longer gap until the next payment.
How to check your new benefit amount
You do not have to wait for the mail. SSA says people with a personal my Social Security account can view their COLA notice online starting in late November, up to three weeks before the paper notice would arrive.
- Create or sign in to your my Social Security account at ssa.gov. If you don’t have an account, create one and enroll in paperless notices by November 18, 2026 to see your COLA notice online, according to SSA.
- Turn on alerts. SSA lets account holders choose text or email alerts when a new message, including the COLA notice, lands in their Message Center.
- Open the Message Center in late November and download the notice. SSA says the 2027 notice is a simplified one-page format showing exact dates and dollar amounts for your new benefit and any deductions.
- Check the Medicare line. If your Medicare premiums are deducted from your benefit, SSA says you can see your 2027 premium amount in the Message Center starting in late November as well.
- Save a copy. Lenders, landlords and benefit programs sometimes ask for proof of income.
If you are not enrolled in paperless notices, your COLA notice arrives by mail in December. Be wary of calls, texts or emails claiming you must “activate” or “claim” your COLA. The increase is automatic, and SSA does not charge a fee for it.
How Medicare Part B affects your 2027 raise
For most people on Medicare, the Part B premium is deducted from their Social Security payment. That means your net increase depends partly on what the Part B premium does in 2027.
- 2026 standard Part B premium: $202.90 a month, with a $283 annual deductible.
- 2027 projection: The 2026 Medicare Trustees Report projected a 2027 standard premium of about $209.50 a month and a deductible of about $292, as summarized by the Military Officers Association of America.
- Official figure: The Centers for Medicare & Medicaid Services (CMS) sets the final premium, typically in November. Projections have been wrong before, in both directions, so treat $209.50 as an estimate until CMS announces.
Worked example (illustrative)
Suppose a retiree’s gross benefit is $2,000 a month in 2026 with the standard $202.90 Part B premium deducted, for a net of $1,797.10.
- 2027 gross benefit at 3.6%: about $2,072.00
- If the Part B premium is $209.50 as projected: net of about $1,862.50
- Net raise: about $65.40 a month, rather than the full $72
People with higher incomes may pay more for Part B and Part D because of income-related monthly adjustment amounts (IRMAA), which are based on tax returns from two years earlier. Those individuals could see a smaller net increase. Federal law also includes a “hold harmless” protection that, for many beneficiaries who have Part B deducted from their Social Security, prevents a premium increase from lowering their net benefit below the prior year’s amount. It does not apply to everyone, so check your notice.
Medicare Open Enrollment runs until December 7, 2026. If your plan’s premiums or drug costs are changing, compare options before that date, because Medicare Advantage and Part D premiums can also be deducted from your benefit.
Other 2027 Social Security changes worth knowing
| Item | 2026 | 2027 |
|---|---|---|
| Maximum earnings subject to Social Security tax | $184,500 | $192,300 |
| Earnings test, under full retirement age (benefits reduced $1 for every $2 above) | $24,480 a year | $25,560 a year |
| Earnings test, year you reach full retirement age ($1 for every $3 above, months before FRA) | $65,160 a year | $67,920 a year |
| Earnings for one work credit | $1,890 | $1,970 |
| SSI federal maximum, individual | $994 a month | $1,029 a month |
| SSI federal maximum, couple | $1,491 a month | $1,544 a month |
Sources: SSA’s 2027 COLA fact sheet, as reported by the Journal of Accountancy and the Society of Actuaries. The earnings test matters if you claimed benefits before full retirement age and still work. People born in 1960 or later have a full retirement age of 67. SSI maximums are federal amounts; some states add a supplement, and countable income reduces the payment.
What to do now: a short checklist
- Set up or update your my Social Security account and turn on paperless notices by November 18, 2026 if you want the notice online.
- Estimate your gross increase with the 3.6% figure, then subtract the projected Part B change to get a realistic net number.
- Review your Medicare plan before Open Enrollment closes on December 7, 2026.
- Check your federal tax withholding on benefits if your income is rising; a higher benefit can change how much of it is taxable.
- If you still work and are under full retirement age, compare your expected 2027 earnings with the $25,560 limit.
- Update your household budget for January, remembering that some January payments arrive on December 31.
Rules change and individual situations differ. For anything specific to you, use your own SSA notice, contact SSA directly, or talk to a qualified financial or tax professional.
Frequently Asked Questions
What is the Social Security COLA for 2027?
The 2027 COLA is 3.6%. SSA announced it on October 14, 2026, based on the rise in the CPI-W from the third quarter of 2025 to the third quarter of 2026.
When will I get the 2027 COLA increase?
Social Security beneficiaries get it starting with their January 2027 payment, which for most people arrives on January 13, 20 or 27 depending on birthday. SSI recipients and some long-time beneficiaries receive their January payment on December 31, 2026.
How much will my check go up in 2027?
Multiply your current gross monthly benefit by 0.036 for an estimate. SSA says the average retirement benefit rises by about $75 a month. Your COLA notice shows your exact amount.
When can I see my COLA notice online?
From late November 2026 in the Message Center of your my Social Security account. If you don’t have an account yet, SSA says to create one and enroll in paperless notices by November 18 to see it online.
Will the Medicare premium increase eat my COLA?
Part of it, for most people. The Trustees projected the standard Part B premium rising from $202.90 to about $209.50 in 2027, which would take about $6.60 of a monthly raise. The official premium is set by CMS, usually in November.
Is the 2027 COLA bigger than last year’s?
Yes. The 2026 COLA was 2.8%. The 2027 COLA of 3.6% is the largest since the 8.7% increase for 2023.
Plan with the net number, not the headline
A 3.6% raise is meaningful, but the figure that matters for your budget is what lands in your bank account after Medicare and any other deductions. Check your notice in late November, compare it with your estimate, and adjust your 2027 budget before the first raised payment arrives.
