Social Security’s 2027 COLA: What to Check Before January

Social Security benefits will receive a 3.6% cost-of-living adjustment for 2027, the Social Security Administration announced October 14. The agency said retirement benefits will increase by $75 a month on average. Its announcement gives beneficiaries a starting point for next year’s budget, but the average dollar increase is not a promise that every recipient will receive exactly $75 more. The percentage adjustment and each person’s individual benefit need to be kept distinct.

SSA said nearly 72 million Social Security beneficiaries will see the adjustment beginning in January 2027. Increased payments to about 7.3 million Supplemental Security Income recipients begin December 31, 2026. Some people receive both benefits, the agency cautioned, so those recipient counts should not simply be added together. Households receiving SSI should also note the different payment timing rather than assuming every increase first arrives during January.

Use the Personalized Notice

The agency said people with personal my Social Security accounts can view their COLA notice online starting in late November, up to three weeks before a paper notice arrives. Those who do not have an account need to create one and enroll in paperless notices by November 18 to see their notice online. SSA also allows account holders to choose text or email alerts when a new message is available in their account’s Message Center.

People who have not enrolled in paperless notices will receive their COLA notice by mail in December, according to SSA. The practical next step is to decide which notice route to use and then review the individual document when it becomes available. A national average is useful context, but a personalized notice is the appropriate reference for checking an individual benefit rather than treating the headline average as a household-specific figure.

The 2027 fact sheet says the adjustment is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, from the third quarter of 2025 to the third quarter of 2026. That is the stated basis for the 3.6% figure. It is not a calculation of any one household’s expenses, so recipients should compare their own budget with their notice instead of assuming every expense moves by the COLA percentage.

Working While Receiving Benefits

For beneficiaries under full retirement age, SSA’s earnings-test exempt amount rises to $25,560 a year in 2027, from $24,480 in 2026. The fact sheet says $1 in benefits will be withheld for every $2 in earnings above the limit. Anyone combining employment and benefits should distinguish this earnings-test rule from the cost-of-living adjustment: a higher benefit rate and a limit on earnings before withholding are separate parts of the agency’s update.

A different rule applies in the year a person reaches full retirement age. The 2027 exempt amount is $67,920, up from $65,160 in 2026, and applies only to earnings for months before reaching that age. SSA says $1 in benefits is withheld for every $3 above that limit. Beginning with the month full retirement age is reached, the fact sheet lists no earnings-test limit. The relevant rule therefore depends on the beneficiary’s age and timing.

The fact sheet also raises maximum earnings subject to the Social Security payroll tax to $192,300 for 2027 from $184,500 in 2026. That taxable maximum is not the retirement earnings-test exemption and should not be used in its place. For planning, keep three questions separate: when the increased benefit starts, what the personalized notice says, and whether earnings-test rules apply to work income. The SSA announcement and fact sheet provide different pieces of that checklist.