Key Details
- Percentage increase: 3.6%
- The 3.6% increase applies to the December 2026 Social Security retirement payment that retirees receive in January 2027.
- Average benefit increase: About $75–$76 more per month (roughly $900 more over the year) for the average retired worker.
- Social Security effective date: Begins with benefits paid in January 2027 (December 2026 benefits).
- SSI effective date: Payments begin increasing on December 31, 2026.
- Taxable maximum: Rises to $192,300.
What this means: An average retired worker currently receiving about $2,095 per month will see the benefit rise to approximately $2,170. Couples, survivors, and disabled workers receive proportional increases.
Recent COLA History (2021–2026)
The post-2020 period has featured higher inflation and correspondingly larger COLAs than the low-inflation years before it.
Average annual COLA across these six years: approximately 4.45%. The 8.7% adjustment in 2022 is the second-highest in the automatic COLA era (behind only 1980’s 14.3%).
Historical Context (1975–2020)
Automatic COLAs began in 1975. The full series maintained by the Social Security Administration shows a wide range driven by economic conditions:
- 1975–1982: High-inflation era, average ≈7.9%, peak of 14.3% in 1980.
- 1983–2008: More moderate adjustments, average ≈3.1%, no zeros.
- 2009–2020: Low-inflation period with three zero COLAs (2009, 2010, and the 2015–2016 window), average ≈2.0%.
The long-term average across the full automatic COLA period is approximately 3.7–3.8%. The 2027 COLA of 3.6% sits very close to that long-run average.
How COLAs are calculated: Based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the prior year to the third quarter of the current year. The 2027 COLA reflects the increase from Q3 2025 to Q3 2026.
Looking Ahead
The 3.6% adjustment is a meaningful step up from the more modest increases of 2024 and 2025. Many beneficiaries will see part of the gain offset by higher Medicare Part B premiums. Personalized COLA notices become available in my Social Security accounts in late November 2026.
Full official series: SSA Cost-of-Living Adjustments Historical Series.