Investing & Retirement

Social Security’s 2027 Increase Is Confirmed at 3.6%

By Owen Marsh / October 25, 2026 / Updated November 11, 2026

An older couple reviewing documents and making notes at a table

The number is 3.6%. That is the 2027 cost-of-living adjustment (COLA) for Social Security, announced on 14 October 2026 and set out in a Social Security Administration notice published in the Federal Register on 26 October. SSA put the average gain at about $75 a month, and the official math is simple: the CPI-W inflation index averaged 328.746 in July through September 2026, against 317.265 a year earlier. The catch is Medicare. The standard Part B premium is projected at $209.50 a month for 2027, up $6.60 from $202.90, but as of 8 November 2026 I could find no official CMS announcement of the final figure. A raise that arrives a few dollars pre-shrunk is still a raise, but you should know the number before you budget.

Key takeaways

The 2027 COLA is 3.6%, up from 2.8% the year before. It applies to benefits payable from January 2027, and SSI payments for January are paid on 31 December 2026.
It is an average of about $75 a month, not a flat amount. On a $2,000 benefit, 3.6% is $72; on $1,000 it is $36.
The maximum earnings subject to Social Security tax rises from $184,500 to $192,300 in 2027.
The 2027 Part B premium is not final. The Medicare Trustees projected $209.50 and a $292 deductible; CMS normally announces the real numbers in the fall.
Some of the COLA can be absorbed by the Part B premium taken from your check, so the deposit and the headline percentage will not match.

How the 3.6% was set, and when it arrives

SSA publishes the arithmetic in its Federal Register notice. The COLA compares the average CPI-W, an index of prices paid by urban wage earners and clerical workers, for the third quarter of the current year with the third quarter of last year. The monthly values were 327.104, 328.481 and 330.654 in 2026, averaging 328.746. The 2025 months were 316.349, 317.306 and 318.139, averaging 317.265. Divide, and you get 3.6% after rounding to the nearest tenth.

ABC News, reporting on 14 October, tied the figure to September inflation data that showed prices at a four-month high, driven largely by gasoline. BLS’s September CPI shows the all-items index up 3.7% on the year. The gap between 3.6% and 3.7% is a different index and a different window, not an error.

The notice says benefits for December 2026, payable in January 2027, rise 3.6%, and federal SSI rates rise 3.6% for payments dated January 2027, which are paid on 31 December 2026. ABC reported that people can see new amounts in their online accounts from late November and that mailed notices start in early December. It gave both “more than 70 million” recipients and, in the commissioner’s statement, 76 million. I could not reconcile those, so I am not quoting a single total.

Monthly benefit before the COLA	3.6% increase	Approximate new amount
$1,000	$36	$1,036
$1,500	$54	$1,554
$2,000	$72	$2,072
$3,000	$108	$3,108

That table is my arithmetic. SSA rounds, and your notice is the only number that counts. An earlier version of this article quoted an average retired-worker benefit of $2,170 a month. SSA’s own pages refused my automated requests, and I could not confirm that figure from a page I opened, so I left it out.

The Part B premium question

The 2026 standard Part B premium is $202.90 a month, up $17.90 (9.7%) from 2025, with a $283 deductible, according to AARP. For 2027, AARP, citing the Medicare Trustees’ 2026 report, gives a projected $209.50 and a $292 deductible. AARP also notes the Trustees’ premium projections have been accurate only three times in the past decade, so treat the $209.50 as a placeholder. As of 8 November 2026, I found no CMS release giving the official amounts, and AARP’s 5 October article said CMS would announce them “later this fall”.

Item	2026 (official)	2027 (Trustees projection, not final)
Standard Part B premium	$202.90 a month	$209.50 a month (+$6.60, 3.25%)
Part B deductible	$283	$292

My arithmetic: on the $75 average increase, a $6.60 premium rise leaves $68.40, assuming the premium is deducted from your benefit. A “hold harmless” rule in the Social Security Act stops a Part B increase from reducing a recipient’s check below the prior year’s amount, but AARP says the projected increase is small enough that most people will see at least part of it. About 30% of enrollees are not covered by that rule, including people who do not receive Social Security payments and those who pay the income-related surcharge (IRMAA). IRMAA depends on income from your tax return two years earlier.

What the COLA looks like after a projected premium rise

Here is the same set of sample benefits with the Trustees’ projected $6.60 Part B increase subtracted. It is my arithmetic, and it only applies if your premium is taken out of your Social Security payment and the hold-harmless rule does not shield you. If the final CMS premium differs from $209.50, so does the last column.

Monthly benefit before the COLA	3.6% increase	Minus $6.60	Net monthly gain
$1,000	$36.00	$6.60	$29.40
$1,500	$54.00	$6.60	$47.40
$2,000	$72.00	$6.60	$65.40
$3,000	$108.00	$6.60	$101.40

The premium rise takes a bigger bite out of a small raise: $6.60 is about 18% of the $36 gained on a $1,000 benefit, and about 6% of the $108 gained on $3,000. AARP says most Part B enrollees have the premium deducted from their Social Security payment, so this is the usual situation. The deductible is separate. It is a yearly amount you pay toward care, projected to go from $283 to $292, and it does not come out of your check.

Other 2027 numbers that moved

The same notice resets other thresholds. These matter if you still work, receive SSI or have disability benefits.

Item	2026	2027
Maximum earnings taxed for Social Security	$184,500	$192,300
Earnings for one credit (quarter of coverage)	$1,890	$1,970
Earnings limit, under full retirement age (monthly)	$2,040	$2,130 ($25,560 a year)
Earnings limit, year you reach full retirement age (monthly)	$5,430	$5,660 ($67,920 a year)
Disability work test (substantial gainful activity), non-blind, monthly	$1,690	$1,770
Disability work test (substantial gainful activity), blind, monthly	$2,830	$2,950
SSI federal rate, individual	$994	$1,029
SSI federal rate, couple	$1,491	$1,544

The $192,300 figure is a ceiling on earnings subject to that payroll tax, not an income-tax bracket. The notice also sets the 2025 national average wage index at $72,800.33.

If you are still working in your 50s or early 60s

Most readers in this audience are not collecting retirement benefits yet, but the same notice changes numbers that touch your paycheck and your credits.

Payroll tax ceiling. The Social Security tax applies to wages up to $192,300 in 2027, up $7,800 from $184,500. IRS lists the Social Security tax rate at 6.2% for the employee and 6.2% for the employer. My arithmetic: 6.2% of $7,800 is $483.60, so an employee earning at or above the new ceiling pays up to $11,922.60 in Social Security tax for 2027, against $11,439.00 at the 2026 ceiling. If you earn less than $184,500, the higher ceiling changes nothing for you.
Earning a credit. One credit now takes $1,970 of covered earnings, up from $1,890. My arithmetic: earning all four credits for 2027 takes $7,880, against $7,560 for 2026.
The earnings test, if you claim early. The notice says that if you collect retirement benefits before full retirement age, SSA withholds $1 of benefits for every $2 you earn above the limit. In the calendar year you reach full retirement age, it withholds $1 for every $3 above the higher limit, and only for months before that birthday month. The 2027 limits are $25,560 and $67,920 a year.

Example (under full retirement age all of 2027)	Arithmetic	Benefits withheld
Earnings of $30,000	$30,000 – $25,560 = $4,440; half is $2,220	$2,220
Earnings of $40,000	$40,000 – $25,560 = $14,440; half is $7,220	$7,220
Earnings of $25,000	Below the limit	$0

Those figures are my illustration of the rule as the notice states it, not a prediction for your case, and I could not open SSA’s own explanation of how withheld benefits are later credited back, so check that with SSA before you count on it. The test applies only to benefits claimed before full retirement age; if you have not claimed, it does not apply to you.

A checklist for the next eight weeks

Check your online Social Security account from late November for your new amount.
Watch for the mailed notice in December and keep it.
Look for CMS’s official 2027 Part B premium and deductible, normally announced in the fall.
Compare the gross increase on your notice with the Part B premium shown, to see the likely net change.
If you work while collecting, note the 2027 earnings limits in the table above and estimate your 2027 earnings against them.
If you are still working and paying payroll tax, expect your pay stubs to reflect the higher $192,300 ceiling only if you earn above $184,500.
If you receive SSI, expect the January payment on 31 December 2026.
Questions about your own benefit go to SSA directly; Medicare questions go to your state’s SHIP counselor or 1-800-MEDICARE.

Frequently asked questions

Is the 3.6% already final?

Yes. SSA announced it on 14 October, and the Federal Register notice dated 26 October records it. What is not final is the Part B premium.

Will I get exactly $75 more?

No. That is an average estimate. Your increase is 3.6% of your own benefit, before deductions.

Why does my deposit not match the percentage?

Deductions such as the Part B premium, and any withholding you chose, come out before the deposit. The percentage applies to the gross benefit.

When will I know the Part B premium?

CMS has not announced it as of 8 November 2026 in anything I could find. Check CMS or Medicare.gov, or ask a SHIP counselor.

Before you decide

Before you build a 2027 budget around 3.6%, wait for two documents: your SSA notice and CMS’s final Part B figure. The gap between them is your real change. This article cannot say whether the raise covers your own costs, since a national index will not match your rent, groceries or medical bills. For decisions about when to claim, work or withdraw savings, talk to a fiduciary financial planner or a SHIP counselor.