3.6% increase will bring additional $75 per month for typical recipient.
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The Social Security cost-of-living adjustment (COLA) is based on the inflation rate during the third quarter each year, compared with the third quarter of the prior year. On Oct. 14, the Social Security Administration announced a 3.6% COLA for 2027. This is substantially higher than the 20-year average of 2.6% and also exceeds the 2026 COLA of 2.8%.
The average monthly Social Security benefit in 2026 was $2,095. The COLA increase will result in an additional $75 each month for the typical recipient.
Social Security and the COLA are increasingly important for senior adults. In 2026, 44% of senior Americans depended on Social Security for their only income, while an estimated 54% live on less than $2,000 per month.
The Consumer Price Index (CPI) rose 0.6% in September, and the 12-month total CPI reached 3.7%. The Bureau of Labor Statistics calculated that core inflation over the previous 12 months was 2.6%. Core inflation is lower than the overall rate of inflation because it excludes food and energy prices, which have increased significantly during the past 12 months.
The Social Security website shows the average monthly 2027 benefit for several groups:
Category Before 3.6% COLA After 3.6% COLA
All Retired Workers $2,095 $2,170
Aged Couple, Both Receiving Benefits $3,238 $3,355
Widowed Mother and Two Children $3,932 $4,074
Aged Widow(er) Alone $1,936 $2,005
Disabled Worker, Spouse and Child $2,970 $3,077
All Disabled Workers $1,642 $1,701
Dr. Myechia Minter-Jordan, chief executive officer of AARP, wrote: “There is a lot on the line financially right now for older Americans: 1 in 5 have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security’s (COLA) critically important. It helps millions of Americans keep up with rising costs for groceries, routine bills, healthcare and other everyday expenses.”
The increased COLA is a welcome benefit for seniors but will also impact the Social Security retirement fund. A reduced retirement fund balance could cause Social Security benefits to be cut by 22% in 2032. Observers are hopeful, however, that Congress will pass reforms before that occurs.
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