Retirees in These 10 States Will Get Largest Social Security COLA Payouts in 2027: Report

Depending on where they live, some retirees will see a larger boost in their Social Security checks than others in 2027, financial policy experts said on Monday.

The Social Security Administration’s official announcement on the COLA adjustment will be made on Oct. 14 after September’s inflation data is released.

The base benefit of a retiree depends on their lifetime earnings and the age at which they first claim Social Security, while the annual COLA then increases that benefit based on inflation, using the year-over-year change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during July, August, and September.

The company says that all 10 states with the highest median Social Security benefits—led by New Jersey at $2,256 and Connecticut at $2,249—feature average monthly payouts exceeding $2,090.

Following New Jersey and Connecticut, the states with the highest median Social Security benefits are Delaware at $2,225, New Hampshire at $2,215, Maryland at $2,181, Washington at $2,144, Michigan at $2,139, Minnesota at $2,135, Massachusetts at $2,121, and Utah at $2,090.

The company noted that six of those states—New Jersey, New Hampshire, Maryland, Washington, Massachusetts, and Utah—rank among the 10 states with the highest median income. Three others—Connecticut, Delaware, and Minnesota—have median incomes above the national median.

A retiree’s state of residence does not directly impact how much income they receive from Social Security, but rather has an indirect correlation, policy experts explained.

“Social Security benefits are not directly linked to where a retired worker lives, so moving to a different state will not magically make your benefit larger. Instead, workers earn more money in certain states, generally because the cost of living is higher, and those individuals are awarded larger Social Security payouts when they retire, as benefits are based in part on lifetime earnings,” according to The Motley Fool.

The American Association of Retired Persons (AARP) notes that beneficiaries have received COLA adjustments almost every year since 1975. For millions of American retirees, Social Security is a key source of inflation-protected income, making accurate COLA information important for retirement planning and budgeting purposes.

Median Social Security Benefits

New Jersey—$2,256
Connecticut—$2,249
Delaware—$2,225
New Hampshire—$2,215
Maryland—$2,181
Washington—$2,144
Michigan—$2,139
Minnesota—$2,135
Massachusetts—$2,121
Utah—$2,090