Social Security announces 3.6 percent benefit increase for 2027

The Social Security Administration said on October 14 that monthly payments will rise by 3.6 percent in 2027. This cost-of-living adjustment is higher than the 2.8 percent increase that was given for 2026. The change is based on inflation data collected between mid-2025 and mid-2026.

For someone receiving the average payment of $2,086 per month, the increase adds about $75. However, Medicare insurance premiums are also going up by $6.60 per month, so the real gain is smaller. Some retirees with higher incomes will pay extra Medicare charges, which reduces their benefit further.

Working people who receive Social Security can now earn up to $25,560 per year before their payments are affected. That limit was $24,480 in 2026.