#1 COLA (Cost-of-Living Adjustment) Increases by 3.6% in 2027
The Cost-of-Living Adjustment (COLA) is designed to protect Social Security benefits against inflation. For 2027, the SSA announced an official 3.6% benefit increase, up from the 2.8% adjustment beneficiaries received in 2026.
That means retirees, survivors, and disability beneficiaries will see a meaningful boost in their monthly checks. On average, retired workers will see their monthly benefits increase by $75, rising from $2,095 to $2,170 in January 2027.
If you are budgeting for the year ahead, factor this COLA increase alongside your other retirement income streams, such as pensions, 401(k) plans, and IRA accounts, to keep your withdrawal strategy on track.
