Social Security COLA 2027: the 3.6% raise, and the other numbers that changed

The Social Security cost-of-living adjustment (COLA) for 2027 is 3.6%, starting with the benefits paid in January 2027. For the average retired worker, that's about $75 more a month, from roughly $2,095 to $2,170 (SSA; SSA fact sheet).

The COLA isn't the only number that changed. The wage cap for Social Security tax, the earnings-test limits and the amount you need to earn a work credit all went up too. This guide walks through what the new figures mean for you, whether you collect today, plan to claim soon, are still working, or are years away from thinking about any of it.

This is general education, not financial or tax advice. Your own COLA notice and your my Social Security account show your exact numbers. Check SSA.gov, Medicare.gov or a licensed professional before you decide anything.

Figures checked October 29, 2026 against SSA's October 14, 2026 press release, SSA's 2027 COLA fact sheet and COLA pages, SSA's Office of the Chief Actuary pages on benefit formulas, and the Federal Register notice "Cost-of-Living Increase and Other Determinations for 2027" (91 FR 67380, October 26, 2026). CMS had not announced the 2027 Medicare Part B premium as of that date.

The 2027 numbers at a glance

Sources: [SSA 2027 COLA fact sheet](https://www.ssa.gov/news/en/cola/factsheets/2027.html); [Federal Register notice 2026-21796](https://www.federalregister.gov/documents/2026/10/26/2026-21796/cost-of-living-increase-and-other-determinations-for-2027), which also puts the national average wage index for 2025 at $72,800.33; [SSA bend points](https://www.ssa.gov/oact/cola/bendpoints.html). The average and maximum benefits are SSA's figures, and the "average" includes people who claimed at every age.

Where the 3.6% comes from

The COLA isn't a decision anyone makes each year. The Social Security Act ties it to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. SSA compares the average for July to September 2026 with the same three months of 2025. That rise was 3.6%, so benefits rise 3.6% (SSA).

That's the point of it: prices went up, so the check goes up by about the same amount, and what your benefit can buy stays roughly where it was. It's not a raise in the sense of getting ahead. It's protection from falling behind.

If you already collect Social Security

Your benefit goes up 3.6%, starting with the payment you get in January 2027. A few practical details:

• Your exact new amount will be in your COLA notice. If you have a my Social Security account, it appears in the Message Center starting in late November, up to three weeks before the paper notice. If you don't have an account, SSA says to create one and choose paperless notices by November 18 to see it online. Otherwise, the notice arrives by mail in December (SSA).
• The raise may not be exactly 3.6% of your current check. SSA applies the COLA to your underlying benefit amount, then rounds down and subtracts things like the Medicare Part B premium, so the change in your deposit can differ a little (SSA).
• Watch the Part B premium. If Part B is deducted from your check, a higher 2027 premium takes part of the COLA. CMS usually announces the new premium in the fall, and SSA says enrollees will see their 2027 premium in the my Social Security Message Center from late November. For 2026, the standard Part B premium is $202.90 a month (CMS). Medicare in plain English explains the parts and the income-related surcharges.
• Taxes can nudge up too. Higher benefits raise your "combined income," and the thresholds that decide whether benefits are taxed aren't adjusted for inflation. Is Social Security taxable? works through the test line by line.

What 3.6% looks like on a few made-up checks

These monthly amounts are illustrative, made up for this guide, before any Medicare premium or tax withholding. Your COLA notice has your real figure.

Made-up figures, rounded to whole dollars. SSA's own rounding and any Part B change will make your number a little different.

If you're deciding when to claim

This is the part people most often get wrong: you don't have to be collecting to get the COLA.

Your benefit is built from your primary insurance amount, the amount you'd get at full retirement age. From the year you turn 62, each year's COLA is added to that amount, whether you've started benefits or not. The Federal Register notice says the 3.6% applies to workers whose eligibility, meaning reaching 62, came before 2027 (Federal Register). SSA's actuaries give the other side of the same rule: someone who turns 62 in 2027 first gets the COLA effective for December 2027 (SSA).

So, roughly:

• You turned 62 in 2026 or earlier and haven't claimed yet: the 3.6% is added to your future benefit. If you claim at 67 or 70, the delayed-claiming increases are applied on top of a primary insurance amount that already includes every COLA since 62.
• You turn 62 in 2027 or later: this COLA doesn't apply to you, but your benefit is figured with the new wage index and bend points instead, which reflect wage growth up to the year you turn 60 (SSA).

What this means for the claiming decision: a big COLA isn't a reason to rush. Claiming at 62 still means a smaller check for life, about 30% less than at full retirement age for anyone born in 1960 or later, and waiting past full retirement age still adds 8% a year up to 70 (SSA; SSA). The COLA is added to whichever amount you end up with.

Our guides on when to claim Social Security and Social Security at 62, 67 or 70 go through the choice, and if you're married, spousal Social Security benefits covers how one partner's timing affects the other. The Social Security timing calculator lets you compare ages with your own estimate.

If you're still working

Three of the new numbers matter while you're earning.

The taxable maximum: $192,300. In 2027, you pay the 6.2% Social Security tax on wages up to $192,300 (self-employed people pay both halves, 12.4%, up to the same cap). The 1.45% Medicare tax has no cap. Earnings above the maximum don't count toward your benefit either (SSA fact sheet).

Work credits: $1,970 each. You need 40 credits, roughly 10 years of work, to qualify for retirement benefits, and you can earn at most four a year. In 2027, $7,880 of earnings anywhere in the year earns all four (SSA). That matters if you're working part-time, freelancing or easing out early: a modest income can still keep your credits coming.

The bend points: $1,340 and $8,077. These are the break points in the formula for people turning 62 in 2027. The formula pays 90% of your average monthly earnings up to the first, 32% up to the second, and 15% above. If you're thinking about stopping work early, Does retiring early reduce your Social Security? shows what missing years do to the result.

If you work while collecting before full retirement age

If you've claimed and you're under full retirement age (67 for anyone born in 1960 or later), the earnings test can hold back part of your benefit:

• Under full retirement age all of 2027: $1 is held back for every $2 you earn above $25,560.
• Reaching full retirement age in 2027: $1 is held back for every $3 above $67,920, counting only earnings in the months before you reach it.
• From the month you reach full retirement age: no limit at all (SSA).

Money held back isn't lost: at full retirement age your monthly benefit is recalculated to credit those months. Working while collecting Social Security has worked examples and the special first-year rule, and Earning a little in early retirement covers part-time work more broadly.

If you're 28 (or anywhere far from 62)

The 3.6% won't touch your paycheck this year, so why read about it? Because it shows what Social Security actually is: an income that lasts for life and rises with prices every year, with the increase set by law. That's hard to buy anywhere else, and it's one reason Social Security is still a real building block of a FIRE plan, even if you plan to stop work long before you claim.

Two things work in your favor while you're years away:

• Your earnings are adjusted for wage growth. When SSA figures your benefit, it indexes your past earnings to the national average wage index, so a dollar you earned at 25 counts in line with wages near the time you turn 60 (SSA). After that, COLAs take over.
• Every year of credits counts. Early-career years, part-time years and side-income years all go on your record. You can check yours any time in a free my Social Security account.

When you work out your FIRE number, counting a realistic Social Security estimate from your claiming age can shrink the savings target a lot. How much do you need to retire? shows how. And if you're starting later than you'd like: starting later isn't starting too late. Social Security is one part of the plan that keeps pace with inflation no matter when you begin saving.

Common questions

How much is the Social Security COLA for 2027?

The cost-of-living adjustment for 2027 is 3.6%. It starts with the Social Security benefits paid in January 2027. For SSI, the higher payment starts on December 31, 2026. SSA estimates the average retired worker's benefit rises about $75 a month, from about $2,095 to $2,170.

When will I see the 2027 increase?

Social Security beneficiaries see it in the payment they receive in January 2027. SSI recipients see it in the payment dated December 31, 2026. Your COLA notice, with your exact new amount, appears in your my Social Security Message Center starting in late November 2026 if you've chosen online notices, or arrives by mail in December.

Do I get the COLA if I haven't started Social Security yet?

Yes, if you turned 62 before 2027. From the year you turn 62, each COLA is added to your primary insurance amount whether or not you've claimed, so a later claim still includes the 2027 increase. If you turn 62 in 2027, your first COLA is the one effective for December 2027.

Will the Medicare Part B premium take part of my COLA?

It can. If your Part B premium is deducted from your Social Security check, any increase in the premium for 2027 reduces the raise you actually see. The 2027 Part B premium hadn't been announced by CMS when we checked on October 29, 2026. For 2026, the standard premium is $202.90 a month.

What is the Social Security taxable maximum for 2027?

The maximum amount of earnings subject to Social Security tax is $192,300 in 2027, up from $184,500 in 2026. The 1.45% Medicare tax applies to all earnings, with no cap.

What is the Social Security earnings limit for 2027?

If you're under full retirement age all year, $1 of benefits is held back for every $2 you earn above $25,560. In the year you reach full retirement age, it's $1 for every $3 above $67,920, counting only earnings before the month you reach it. From full retirement age on, there's no limit.

Are the 2027 401(k) and IRA limits out yet?

Those come from the IRS, not Social Security, and the IRS hadn't announced the 2027 401(k) and IRA limits when we checked. Catch-up contributions after 50 has the current figures, and we'll update it when the new ones are published.

Next step

See how your own estimate compares at 62, at full retirement age and at 70, and what it takes from savings to wait.

Try the Social Security timing calculator →

uFIRE is for education only, not financial advice.