Overview
- The Social Security Administration announced on Wednesday that beneficiaries will receive a 3.6% cost‑of‑living adjustment effective January 2027, raising the average benefit by about $75 a month.
- Civil Service Retirement System annuities will match the full 3.6% increase while Federal Employees Retirement System payments are set to rise by 2.6% under the formula that reduces FERS increases by one percentage point when COLAs reach 3% or more.
- The maximum wage subject to Social Security tax will rise to $192,300 in 2027 and one estimate projects the COLA will add roughly $56 billion to program spending next year.
- Advocates warn that expected large increases in Medicare Part B premiums and the enrollee share of FEHB and Postal Service Health Benefits premiums could largely offset the headline COLA for many retirees.
- Trustees continue to warn of trust‑fund shortfalls in the early 2030s, keeping pressure on lawmakers to consider changes to inflation measures, benefit rules, or financing to shore up long‑term solvency.