Due to inflation and the rising cost of living, Social Security recipients will see higher monthly payments next year.
By Jacquelyn Burrer,
Dallas Morning News
https://www.dallasnews.com/
Due to inflation and the rising cost of living, Social Security recipients will see higher monthly payments next year.
Here’s what to know.
What is the 2027 Social Security cost-of-living adjustment?
Every year, the Social Security Administration determines whether benefits should increase to account for the rising cost of living. These annual increases are known as cost-of-living adjustments, or COLAs.
What is the 2027 Social Security cost-of-living adjustment?
Every year, the Social Security Administration determines whether benefits should increase to account for the rising cost of living. These annual increases are known as cost-of-living adjustments, or COLAs.
The 2027 COLA could not be determined until The Bureau of Labor Statistics released September’s inflation data on Oct. 14, which showed the Consumer Price Index rose 3.7% compared to a year ago. September’s inflation report notes higher prices for gas, air travel and clothing.
In August, the Consumer Price Index increased nationally by 3.4%. This caused various organizations serving older adults, including the AARP and The Senior Citizens League, to forecast a 3.5% cost-of-living adjustment in 2027.
When do my Social Security benefits increase?
Social Security benefits featuring the 2027 cost-of-living adjustment typically get sent out in January.
Beneficiaries receiving Supplemental Security Income payments will also see the same increase for inflation. However, SSI payment increases will begin Dec. 31 instead of its usual payment date, as Jan. 1 is a federal holiday.
How does this year’s cost-of-living adjustment compare to previous years?
In January, monthly Social Security benefits increased by 2.8%, bringing the average retired worker’s monthly benefit from $2,015 to $2,072, according to the administration’s website.
Annual cost-of-living adjustments in the last two decades have ranged from 0% in years when no adjustment was made to 8.7% in 2023, the largest adjustment in years.
Although Social Security beneficiaries will see a larger monthly payment next year, higher healthcare costs and Medicare premiums may impact that increase.
Most Medicare beneficiaries have their standard Part B monthly premium — the portion of Medicare providing standard health insurance — deducted out of their Social Security benefits. According to the 2026 Medicare Trustees Report, the estimated monthly Part B premium for 2027 is $209.50, roughly a 3.3% increase from the 2026 premium of $202.90.
Service Journalism Reporter
Jacquelyn Burrer is the service journalism reporter for The Dallas Morning News. She is a native of North Texas and graduated from Texas State University with a bachelor’s degree in history and in journalism. Her previous reporting can be seen in Community Impact and The Well News.
