Social Security Benefits to Increase by $75 a Month on Average in 2027: What Retirees Need to Know

Millions of Americans receiving Social Security benefits will see more money in their monthly checks next year.

The Social Security Administration announced on Wednesday, October 14, that benefits will increase by 3.6 percent in 2027, and it marks the largest cost-of-living adjustment (COLA) since 2023.

According to the agency, the increase will give the average retired worker an additional $75 per month, or roughly $900 over the course of an entire year.

The adjustment will affect approximately 76 million Americans who receive Social Security or Supplemental Security Income (SSI) benefits.

Social Security recipients will begin receiving their increased payments in January 2027, while those collecting SSI will see the adjustment starting on December 31, 2026.

According to the agency’s 2027 COLA fact sheet, the estimated average monthly benefit for retired workers will increase from $2,095 to $2,170.

However, the full increase might not actually make it into retirees’ pockets.

Medicare Part B premiums, which are typically deducted directly from Social Security payments, could also rise next year. The final premium amount hasn’t been announced yet, which means some retirees may see a smaller increase in their actual monthly deposits.

The annual COLA is based on inflation and it’s meant to help Social Security payments keep with the rising cost of living.

As First for Money previously reported, some seniors have already admitted that they’re worried even with the larger monthly checks, it still won’t be enough to cover rising expenses.

“These little raises just aren’t enough,” a Florida retiree named Pat told CNN. “We’re still trying to catch up from previous years.”

Social Security beneficiaries can view their personalized COLA notices online beginning in late November with their my Social Security accounts. Those who receive their notices by mail will get them in December.

The increase will be applied automatically, so recipients don’t need to take any action.

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