Social security increase 2027

On 13 October 2026, the Social Security Administration officially announced that Social Security beneficiaries and Supplemental Security Income recipients will receive a 2.5% cost-of-living adjustment (COLA) starting in January 2027. This annual increase is designed to help millions of Americans keep pace with inflation, ensuring that the purchasing power of their benefits is not eroded by rising costs for goods and services. The adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as measured by the Bureau of Labor Statistics. While the 2.5% increase is lower than the adjustments seen in previous high-inflation years, officials noted that it reflects the recent stabilization of consumer prices. Starting in December 2026, the Social Security Administration will begin mailing notices to beneficiaries detailing their specific new benefit amounts. This adjustment will affect approximately 72 million Americans, providing a modest boost to monthly checks to help cover essential living expenses throughout the upcoming calendar year.