The Social Security Administration said Wednesday that its annual cost-of-living adjustment will be 3.6% for 2027. According to the agency, about 72 million Social Security beneficiaries will see the increase beginning in January, while Supplemental Security Income recipients will get it starting Dec. 31. Some people receive both kinds of benefits. SSI serves roughly 7.3 million people with limited income and resources.
The adjustment reflects inflation measured by the Consumer Price Index from the third quarter of 2025 through the same period in 2026, the agency said. Retirement benefits will rise by an average of about $75 per month. The payroll tax rate remains effectively unchanged at 6.2% of covered earnings, though the maximum taxable wage base will rise from $184,500 this year to $192,300 in 2027.
The source reports that Social Security is taking in less tax revenue than it pays out. If Congress does not act, the report says, benefits would automatically start declining in 2032. It also notes that candidates in key U.S. Senate races this year have said little about the issue, even though the next six-year terms would overlap with that projected reduction.