To account for inflation, the Social Security Administration (SSA) makes an annual cost-of-living adjustment (COLA) to retiree benefits for the following year.
The agency determines the COLA by reviewing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a monthly measure of the cost of goods and services produced by the Bureau of Labor Statistics.
Data from the third quarter of the current year is compared with the third quarter of the previous year.
The COLA for 2026 was 2.8%, increasing benefit checks by an average of about $56 per month. Find out when we’ll learn what the 2027 increase will be, how much benefits could go up and more.
Worried about outliving your retirement savings? Annuities can help.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Immediate annuities, fixed annuities, fixed indexed annuities, registered index-linked annuities
$10,000 for Athene Agility, Athene Protector, Athene MaxRate, Athene Ascent Pro and Athene Performance Elite
2027 Social Security COLA
When will the 2027 Social Security COLA be announced?
The 2027 Social Security COLA should be announced in mid-Oct. 2026, in conjunction with the release of the CPI-W data from Sept. 2026.
Beneficiaries will be notified of their specific benefit rate in Dec. 2026, with the COLA reflected in most checks starting in Jan. 2027.
How much will the Social Security COLA be in 2027?
The official Social Security cost-of-living adjustment (COLA) for 2027 won’t be announced until mid-October 2026. Looking at cooler inflation, however, independent analyst Mary Johnson forecast a COLA of 3.7%.
The Senior Citizens League, a nonprofit that advocates for older Americans, is projecting a similar 3.8% increase for 2027. A 3.8% uptick would mean the average benefit for retirees would rise by $77 a month, from $2,026 to $2,103.
According to TSCL, that’s far short of the average senior cost of living, about $2,700 per month.
You can borrow against the equity accrued in your home with a reverse mortgage
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Flex Payment HECM, Flex Payment jumbo reverse, reverse for purchase, refinancing
Up to $4 million for Flex Payment jumbo mortgages
When will I see the increase in my Social Security check?
Social Security benefit checks should reflect the COLA starting in January 2027. Beneficiaries receive checks based on their date of birth:
- If you were born between the 1st and the 10th of the month, you should see the COLA in the check that arrives on Jan. 13, 2027.
- If you were born between the 11th and 20th of the month, expect it on Jan. 20, 2027.
- If you were born between January 21st and the end of the month, the first new check should arrive on Jan. 27, 2027.
Some recipients will receive the increase sooner, however.
- If you start receiving Social Security benefits before May 1998, your first check of the year should arrive on Jan. 3, 2027.
- If you receive Supplemental Security Income (SSI), those benefits are typically paid on the first of the month. Since New Year’s Day is a federal holiday, those checks will be distributed on Dec. 31, 2026.
The full calendar of Social Security payment dates is available online.
Changes to Social Security in 2026
While the new COLA won’t appear on benefit checks until 2027, some changes to Social Security have already taken effect.
1. Full retirement age has gone up: At full retirement age (FRA), you can receive 100% of your Social Security benefits. For individuals born in 1960 or later, the FRA in 2026 is 67. This completes the phased-in transition from the previous age of 65. (People born on Jan. 1 should refer to the previous year, however.)
2. The Social Security tax limit has increased: The maximum taxable earnings limit for Social Security in 2026 is $184,500, up from $176,100 in 2025.
3. You can earn more while still collecting benefits: The Social Security earnings test limits how much you can receive while still working. Â
- For 2026, if you are under FRA for the entire year, the yearly earnings limit is $24,480. The SSA will deduct $1 from your benefit payments for every $2 you earn above that amount.
- If 2026 is the year you reach FRA, the limit on your earnings is $65,160, and $1 in benefits will be deducted for every $3 you earn above that amount. (Only earnings up to the month before you reach your full retirement age are counted, not your earnings for the entire year.)
- After you reach your FRA, you can earn any amount without reducing your Social Security benefits.
When can I start collecting Social Security?
You can begin collecting Social Security at age 62, although the amount you receive will be higher the longer you wait to apply, up until age 70.
You can begin receiving 100% of your Social Security benefits when you reach full retirement age (FRA). As of Jan. 2, 2026, the FRA for anyone born in or after 1960 is 67. This is the final step in a long-term transition from age 65. (The FRA for Individuals born in 1959 is 66 and 10 months)
Year of birth Social Security full retirement age 1943-195466195566 and two months195666 and four months195766 and six months 195866 and eight months 195966 and 10 months 1960 or later 67
FAQs
How is the Social Security COLA calculated?
The COLA is based on the year-over-year activity of the CPI-W, which measures the prices of food, clothing, shelter, transportation, medical care, recreation and other goods and services. If there has been an increase in the CPI-W from Q3 of the previous year to Q3 of the current year, that amount (rounded to the nearest tenth of a percent) becomes the COLA.
Can the COLA ever be negative?
No, the COLA will never go down. If the CPI-W decreases, Social Security benefits will remain unchanged. Since the system was started in 1975, there have been three years with no adjustments: 2010, 2011 and 2016.
Are Social Security benefits taxable?
Social Security payments have been taxable since 1984, but whether your check is taxed depends on how much you earn: If your income is under $25,000 ($32,000 for married couples), your benefits are not taxed. If you earn between $25,000 and $34,000 as a single filer (between $32,000 and $44,000 as a married couple), up to half of your benefits can be taxed. And if you earn above $34,000 ($44,000 for married couples), up to 85% of your benefits can be taxed.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
