Social Security checks are getting bigger next year. The Social Security Administration announced on Oct. 14, 2026 that benefits will rise 3.6% starting in January 2027.
The cost-of-living adjustment, or COLA, applies to nearly 72 million Social Security beneficiaries. The average retirement benefit will increase by about $75 a month, according to the SSA. The Associated Press and CNBC reported the same figures.
About 7.3 million people who receive Supplemental Security Income, or SSI, will see their increase starting Dec. 31, 2026. In total, the adjustment affects about 76 million Americans.
How the COLA is calculated
Each year, Social Security adjusts benefits based on inflation. The increase is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, using data from July through September. The announcement usually comes in October.
The 2027 increase reflects inflation that has stayed elevated. Consumer prices rose 3.7% from a year earlier in September 2026.
How to see your new amount early
People with a personal my Social Security account can view their COLA notice online starting in late November 2026, up to three weeks before a paper letter would arrive.
If you don't have an account yet, you'll need to create one at ssa.gov/myaccount and choose paperless notices by Nov. 18, 2026 to get that early access.
What retirees should do now
- Check your notice when it arrives. It shows your new benefit and any deductions.
- Watch Medicare premiums. If you have Part B premiums deducted from your check, a change in those premiums affects how much of the raise you actually keep.
- Update your budget. Rising costs for food, energy and housing may absorb much of the increase.
- Review tax withholding. A larger benefit could affect how much of your Social Security is taxable, depending on your other income.
Will it keep up with costs?
A 3.6% increase is in line with historical averages and larger than raises in low-inflation years. But many retirees on fixed incomes feel that prices for essentials have risen faster than their checks. A COLA helps, but it's designed to keep pace with average inflation, not anyone's specific costs.
A brief history of the COLA
Automatic cost-of-living adjustments have been part of Social Security since 1975. Before that, Congress had to pass special legislation any time it wanted to raise benefits, which meant increases were irregular and often lagged behind inflation for years at a time. Tying benefits to the CPI-W was meant to protect retirees' purchasing power automatically, without waiting on lawmakers.
Since then, COLAs have ranged from 0% in years with little or no inflation, including 2010, 2011 and 2016, to double digits in 1980 and 1981, when inflation was raging. The 3.6% increase for 2027 sits closer to the long-run average than the unusually large adjustments of 2022 and 2023, when inflation surged after the pandemic.
Why Medicare premiums matter so much
For many retirees, the most important number isn't the COLA itself but what's left after Medicare Part B premiums are deducted. Part B premiums are typically taken directly out of a Social Security check, so when premiums rise faster than the COLA, the net increase in take-home benefits can feel much smaller than the headline percentage suggests. The Centers for Medicare & Medicaid Services usually announces the following year's premium in the fall, around the same time as the COLA, so retirees often don't know their true net increase until both numbers are public.
The bottom line
Social Security benefits will rise 3.6% in January 2027, adding about $75 a month for the average retiree. Set up your online account by Nov. 18 to see your new amount early, and update your budget with both the raise and any Medicare changes in mind.
Sources: https://www.ssa.gov/news/en/press/releases/2026-10-14.html, https://apnews.com/article/social-security-cost-of-living-inflation-cpi-c7c73bbb304205696e7dd1afa27fc850, https://www.cnbc.com/2026/10/14/social-security-cola-2027.html
Content on The Evergreen Edit is for educational and informational purposes only and is not individualized financial, investment, tax or legal advice. Learn more.
This article is for educational purposes only and isn't personalized financial, tax or legal advice. Consider talking with a qualified professional about your situation.
Kiara Miller — Founder & Editor
Kiara Miller is the founder and editor of The Evergreen Edit. He has been doing independent finance research for two decades and reviews every article before it's published.
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