The Social Security Administration announced a 3.6% Cost-of-Living Adjustment (COLA) for 2027, increasing benefits for about 76 million Americans receiving Social Security and Supplemental Security Income (SSI).
Social Security and SSI Benefits
- Social Security beneficiaries will receive a 3.6% increase beginning with payments issued in January 2027.
- SSI recipients will receive their increased payments beginning December 31, 2026.
- The maximum earnings subject to Social Security tax will increase to $192,300.
- Workers under full retirement age may earn up to $25,560 before benefit reductions apply.
- Workers reaching full retirement age during 2027 may earn up to $67,920 before higher earnings reduction rules apply.
- Individuals who are at full retirement age for the entire year have no earnings limit.
Federal Retiree COLA: FERS and CSRS
Federal retirees will also see COLA adjustments to their annuities beginning in January 2027. However, the adjustment differs depending on the retirement system:
- CSRS retirees: 3.6% COLA (full adjustment)
- FERS retirees receiving a COLA: 2.6% COLA
Under federal law, FERS COLAs are calculated using a modified formula. When the annual COLA exceeds 3%, eligible FERS retirees receive a COLA that is 1% less than the full adjustment. Because the 2027 COLA is 3.6%, eligible FERS retirees will receive a 2.6% increase, while CSRS retirees receive the full 3.6% increase.
Accessing Your COLA Notice
Most Social Security beneficiaries can view their 2027 COLA notice online through their my Social Security account starting in late November 2026. Individuals who established an account by November 18, 2026, can access their notice through the secure Message Center.
OPM annuitants can view the increase on their January 2027 annuity statement through Retirement Services Online.
Important Security Reminder
Social Security services are provided free of charge. Beneficiaries should be cautious of fraudulent phone calls, emails, text messages, and websites attempting to obtain personal information or payments. The Social Security Administration will never request payment through gift cards, wire transfers, or similar methods.
Bottom Line
The 2027 COLA provides meaningful increases designed to help retirees and beneficiaries keep pace with inflation:
- Social Security Benefits: +3.6%
- SSI Benefits: +3.6%
- CSRS Annuities: +3.6%
- FERS Annuities: +2.6% (for retirees eligible to receive a COLA)
These increases will begin with January 2027 benefit and annuity payments, helping retirees maintain their purchasing power as living costs rise.
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