Social security benefit increase 2027

On 13 October 2026, the Social Security Administration officially announced that Social Security beneficiaries will receive a 2.5% Cost-of-Living Adjustment (COLA) starting in January 2027. This adjustment is designed to help retirees and disability recipients keep pace with inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). While the increase is lower than the adjustments seen in previous high-inflation years, officials noted that it reflects the recent stabilization of consumer prices across the United States. The 2.5% increase will apply to more than 72 million Americans, including those receiving Social Security retirement, survivors, and disability insurance benefits. Additionally, the maximum amount of earnings subject to the Social Security tax will increase for the 2027 tax year. Beneficiaries are expected to receive personalized notices via the mail or their online "my Social Security" accounts in December, detailing their specific new benefit amounts. Advocacy groups have expressed mixed reactions, noting that while the adjustment provides necessary relief, it may not fully cover rising costs in essential sectors like healthcare and housing.