The 2027 Social Security COLA Was Just Announced. Here's How It Will Affect Spousal Benefits Next Year.

On Oct. 14, the Social Security Administration (SSA) announced the highly anticipated cost-of-living adjustment (COLA). This is the annual increase to Social Security benefits that’s intended to offset inflation and help retirees maintain the purchasing power of their fixed benefits.

The 2027 COLA officially came in at 3.6%, the highest since the 8.7% bump in 2023 and the fifth-highest in the past 35 years.

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Much of the attention goes to the bump that standard retirement benefits will get, but millions of people receiving spousal benefits will also see a nice increase. Let’s dive into how it works.

How spousal benefits work

Claiming spousal benefits lets someone receive up to 50% of their spouse’s primary insurance amount (PIA), the monthly benefit they’re due if they claim at their full retirement age. The current full retirement age is 67 for anyone born in 1960 or later.

To claim spousal benefits, you must check all of the following boxes:

• Be married for at least one year.

• Be at least 62 years old, care for a child under age 16, or care for a child with a disability that began before age 22.

• Have a partner currently receiving benefits.

If you were married for at least 10 years and divorced, you may be eligible to claim spousal benefits based on your ex-spouse’s work record, as long as you’re currently unmarried. If your ex-spouse remarries, you’re still eligible, and they don’t need to currently be receiving benefits for you to claim as you would with standard spousal benefits.

How the COLA affects spousal benefits

Since spousal benefits are proportionate to the primary spouse’s benefits, a 3.6% boost to benefits would also mean a 3.6% boost to spousal benefits.

For example, if the primary spouse’s PIA is $2,000 per month, the person claiming spousal benefits would be eligible for $1,000 a month in benefits. With a 3.6% COLA, the primary spouse’s benefit in 2027 would be $2,072, and the person claiming spousal benefits would receive $1,036.

As of September, the average monthly spousal benefit is $986, and a 3.6% COLA would increase it by around $35 to $1,021. The average will inevitably fluctuate as people enter and leave the Social Security system, but assuming it holds, the average spousal benefit could net someone an extra $420 next year.

How the 2027 COLA was calculated

The COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA averages the CPI-W for the third-quarter months (July, August, and September), compares it to the previous year’s average, and then sets the upcoming COLA as the increase, rounded to the nearest tenth of a percentage point.

The CPI-W average this year was 3.62% higher than the 2025 average, giving us a 3.6% COLA for 2027.

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The 2027 Social Security COLA Was Just Announced. Here’s How It Will Affect Spousal Benefits Next Year. was originally published by The Motley Fool