The latest Social Security 2027 updates include a 3.6% cost-of-living adjustment for retirement, disability and Supplemental Security Income benefits. The increase will affect approximately 76 million Americans.
Social Security beneficiaries will receive the adjustment with payments issued in January 2027. Higher SSI payments will begin Dec. 31, 2026, because Jan. 1 is a federal holiday.
Social Security 2027 COLA Raises Average Benefits
The Social Security Administration calculates the annual adjustment using inflation data. It compares the Consumer Price Index for Urban Wage Earners and Clerical Workers during the third quarter of each year.
The 3.6% increase is higher than the 2.8% adjustment provided for 2026.
An average retired worker’s monthly benefit will increase from approximately $2,095 to $2,170. That represents an average increase of $75 per month.
An older couple receiving benefits will see its average combined payment rise from $3,238 to $3,355. The average benefit for a disabled worker will increase from $1,642 to $1,701.
Actual increases will vary because Social Security applies the adjustment to each person’s benefit amount. The figures announced by the agency are national averages.
SSI Payments Increase in 2027
The maximum federal SSI payment will increase to $1,029 per month for an eligible individual. The maximum for an eligible couple will rise to $1,544.
However, the SSI resource limits will not change. The limit remains $2,000 for an individual and $3,000 for a couple.
SSI payments can also vary based on income, living arrangements and state supplements.
Earnings Limits Rise for Working Beneficiaries
People receiving retirement benefits before reaching full retirement age can continue working. However, Social Security may temporarily withhold benefits when earnings exceed certain limits.
The annual earnings limit for workers below full retirement age will increase to $25,560 in 2027. That equals $2,130 per month.
Social Security will withhold $1 in benefits for every $2 earned above that limit.
For workers reaching full retirement age during 2027, the limit will increase to $67,920. The agency will withhold $1 for every $3 earned above the limit before the worker reaches full retirement age.
The earnings test ends during the month a beneficiary reaches full retirement age. There is no earnings limit after that point.
Withheld benefits are not permanently lost. Social Security recalculates the monthly benefit after the person reaches full retirement age.
Social Security Taxable Wage Cap Increases
The maximum amount of earnings subject to Social Security payroll taxes will increase from $184,500 to $192,300.
Employees will continue paying a 6.2% Social Security tax on covered earnings up to that limit. Employers pay the same percentage.
The Medicare tax rate remains 1.45% for employees and employers, with no earnings cap. Self-employed workers generally pay the combined employee and employer portions.
The amount needed to earn one Social Security work credit will increase from $1,890 to $1,970. Workers can earn up to four credits annually.
Disability Thresholds Also Change
The substantial gainful activity threshold for nonblind disabled workers will increase to $1,770 per month. The threshold for blind workers will rise to $2,950.
The trial work period threshold will increase to $1,270 per month. These figures can affect disability eligibility and work incentive rules.
The maximum benefit for a worker retiring at full retirement age will increase from $4,152 to $4,188 per month. That maximum applies only to workers with sufficient earnings at or above the taxable limit.
Medicare Premium Could Affect Net Payments
Medicare had not announced its 2027 premium changes when Social Security released the COLA. Many beneficiaries have their Medicare Part B premium deducted directly from their Social Security payment.
As a result, the increase in a beneficiary’s net deposit may be smaller than 3.6%. The final amount will depend partly on the 2027 Medicare premium.
Personalized COLA notices will become available through my Social Security accounts in late November. Beneficiaries who have not selected paperless notices will receive a mailed notice in December.
The Social Security Administration’s 2027 fact sheet provides the complete list of updated amounts. Beneficiaries should rely on official notices and avoid anyone requesting payment for COLA information or benefit assistance.