Social Security announces 3.6% cost of living increase for 2027

The announcement was expected this week. On October 12, Forbes reported that the Social Security Administration was due to release its 2027 cost of living adjustment on Wednesday, after the latest inflation report.

The adjustment, known as COLA, is intended to keep benefits in step with inflation, according to ABCNews.com. That makes the annual announcement important for beneficiaries counting on those payments.

On October 14, the Social Security Administration announced a 3.6% adjustment for 2027, CNBC reported. The announcement replaced the earlier expectation with a confirmed figure for next year.

The increase is aimed at helping about 68 million beneficiaries keep pace with inflation, according to MarketWatch.

For individual retirement benefits, the increase will average about $70 a month, NBC News reported, citing the Social Security Administration. That is an average, rather than a single dollar increase for every recipient.

The 2027 adjustment will be the largest since 2023, The New York Times reported on October 14. Retirees will see the additional money in their checks starting in January.

The 3.6% adjustment is now confirmed for 2027. The coverage agrees on the rate, with CBS Top Stories also reporting that it is the largest adjustment since 2023 and will affect benefit checks early next year.

The next milestone is January, when retirees begin receiving the extra money, according to The New York Times. The roughly $70 monthly increase reported by NBC News describes the average change in individual retirement benefits, not a guaranteed increase for each person.