Overview
- The Social Security Administration set a 3.6% cost‑of‑living adjustment for 2027 that raises the average monthly benefit by about $75 to roughly $2,170 beginning in January.
- The COLA was calculated using the Bureau of Labor Statistics’ CPI‑W measure for July through September, with September’s reading finalizing the percentage.
- AARP and other advocates say the raise responds to higher costs for gas, groceries, housing and utilities but many recipients told AARP they would need a 5–8% boost to meet budgets.
- The taxable maximum wage base for Social Security payroll taxes will rise to $192,300, and beneficiaries are advised to check personalized notices and payments in their My Social Security accounts.
- Trustees and analysts continue to warn of long‑term funding shortfalls that this annual adjustment does not fix, which keeps policy debates about COLA methods and financing options active.