Nearly 72 million Social Security beneficiaries will see their benefits rise 3.6% in January 2027, the Social Security Administration announced on October 14, in the largest cost-of-living adjustment since 2023. The average retired worker’s monthly benefit will rise from $2,095 to $2,170 — about $75 more a month, or $900 over a year.
The 3.6% cost-of-living adjustment, or COLA, is up from the 2.8% increase that arrived in early 2026, according to the agency. Increased payments to about 7.3 million people receiving Supplemental Security Income will begin earlier, on December 31, 2026.
How the figure was set
The adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, comparing the third quarter of 2026 with the same quarter of 2025. The average CPI-W for July, August and September 2026 produced a rise of about 3.62%, rounded to 3.6%, according to agency data cited in analyses.
Couples where both spouses collect will see a larger bump, from an average of $3,238 to $3,355 a month, the agency’s fact sheet shows. The maximum earnings subject to Social Security tax rises to $192,300 from $184,500.
What could eat into the raise
The headline raise is not the same as extra money in hand. Medicare Part B premiums, which many beneficiaries pay directly out of their checks, are expected to rise, with the 2026 trustees report projecting an increase of about $6.60 a month to $209.50, although the official figure is due from Medicare later this fall.
Beneficiaries also face a tax quirk: the income thresholds that decide how much of a benefit is taxable have never been adjusted for inflation, so each COLA can make a little more of a benefit taxable, analysts said. COLA notices will be available online in late November for my Social Security account users, and by mail in December for everyone else.
The 3.6% increase is the largest since 2023, when benefits jumped 8.7%, according to agency history cited in analyses. It is also well above the 2.8% COLA that arrived in early 2026, reflecting the hotter inflation readings of the past year. Beneficiaries who want to see their exact new amount should check their my Social Security account in late November, when COLA notices go online, or wait for the mailed notice in December. The increase itself is automatic — no application or registration is needed, the agency said.
