Social Security sets 3.6% benefit increase for 2027

The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, raising benefits by about $75 a month on average. The increase is scheduled to appear in Social Security payments beginning in January 2027, while Supplemental Security Income recipients are generally due to receive their adjusted payment on December 31, 2026. The adjustment applies to retirees and other Social Security beneficiaries, including people receiving disability and survivor benefits. The agency’s estimate covers roughly 73 million people receiving Social Security and nearly 7.5 million Supplemental Security Income recipients. Individual increases will depend on each person’s current benefit; the $75 figure is an average, not a guaranteed amount. The annual adjustment is intended to account for inflation and is calculated using changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The agency also announced that the maximum earnings subject to Social Security payroll taxes will rise to $192,300 in 2027 from $184,500 in 2026.