Social security cost of living 2027

On 13 October 2026, the Social Security Administration officially announced that Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.5% cost-of-living adjustment (COLA) for the year 2027. This adjustment 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. The 2.5% increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as calculated by the Bureau of Labor Statistics for the third quarter of 2026. While this increase is lower than the adjustments seen in previous high-inflation years, officials noted that it reflects the recent stabilization of consumer prices. The new benefit amounts will begin appearing in payments starting in January 2027. For the average retiree, this adjustment represents a modest increase in monthly income, intended to cover essential expenses such as housing, food, and healthcare. Beneficiaries will receive personalized notices by mail in December detailing their specific new benefit amounts for the upcoming year.