The Social Security cost-of-living adjustment (COLA) in 2027 is a 3.6 percent increase.
Does COLA Only Affect Retired Workers?
Each fall, the Social Security Administration (SSA) announces changes to the annual cost-of-living adjustment for the forthcoming year.
Based in part on the consumer price index, the COLA has an impact on Social Security payouts for retirees as well as many seniors and people with disabilities who receive disability benefits.
How Much Can You Expect to Receive?
In early December, the SSA begins notifying Social Security’s roughly 71 million beneficiaries about what their monthly retirement benefits checks will total as of 2027. These notifications go out via snail mail. How much each recipient gets in their monthly payout can vary depending on such factors as one’s age, employment history, and past work earnings.
If you don’t want to wait for your mail to learn the details, you can find out how much more you will be receiving in 2027 by visiting the My Social Security online portal in December. There, not only can you obtain details on what your 2027 benefits increase will look like, but you can also carry out numerous other tasks, including estimating your spouse’s Social Security benefits, reviewing your statements, opting out of some printed mailings, or updating your direct deposit information.
As a result of the latest COLA, the monthly amount retirees will receive in their 2027 Social Security checks will, on average, be $75 higher than in 2026 – about $2,170 (up from $2,095). This equals $26,040 per year for an individual recipient.
What About My 2027 SSI Payments?
If you or a loved one are among the 7.3 million people who receive Supplemental Security Income (SSI), the announcement regarding COLA will also bring your payouts up by 3.6 percent.
So, in 2027, the maximum monthly SSI benefit will rise from $994 to $1,029. (Maximum monthly payouts for couples receiving SSI will be $1,544, up from $1,494.) These adjustments begin earlier, in late December 2026. George Vasiliadis, an attorney with the law firm of Vasiliadis Pappas Associates, cautions that “for SSI recipients who also receive Social Security Disability (SSDI) payments or who shift from SSDI to Social Security Retirement benefits, the increase in either of those benefits offsets against that person’s SSI benefits.”
Register online with Social Security
It’s a good idea to open an online account with the Social Security Administration. Visit www.ssa.gov. Notes Dionysios Pappas, an attorney with the law firm of Vasiliadis Pappas Associates, “having an online account provides fingertip access to your account information.” Perhaps more importantly, you can avoid the hassle and delay of trying to make changes, such as transferring your direct deposit benefit to another bank.
For advice and assistance in integrating Social Security benefits into your retirement and estate planning Contact Vasiliadis Pappas Associates, we can help!
