Social Security Raises 2027 Benefits by 3.6%, the Biggest Increase Since 2023

The Social Security Administration announced on Wednesday a 3.6% cost-of-living adjustment for 2027, the largest benefit increase since the 8.7% boost awarded in 2023 in response to surging post-pandemic inflation. The adjustment was higher than many had expected, driven by fresh government data showing consumer prices rose 3.7% over the past 12 months, with gas prices playing a significant role.

The increase translates to roughly $75 more per month in retirement benefits on average, according to the SSA. Around 72 million Americans will see the higher payments beginning in January 2027, while approximately 7.3 million Supplemental Security Income recipients will receive their increases starting December 31, 2026.

Social Security Commissioner Frank Bisignano said the adjustment would give beneficiaries "greater financial stability." The 3.6% figure came in at the upper end of expert projections, which last month had forecast an increase in the 3.5% to 3.6% range.