Retired Americans will receive an additional $75 per month as Social Security benefits rise, helping offset ongoing inflation pressures.
By Reuters and The Associated Press
Published On 14 Oct 2026
U.S. Social Security benefits will rise by 3.6% in 2027, delivering one of the largest cost‑of‑living adjustments (COLAs) in recent years.
The benefit increase will take effect in January for 72 million Social Security recipients and on December 31 for roughly 73 million Supplemental Security Income (SSI) beneficiaries.
Starting in 2027, the taxable wage base ceiling will rise to $192,300, up from $184,500 in 2026.
Social Security is the nation’s largest federal social insurance program, providing financial assistance to older adults, disabled individuals, and survivors of deceased workers. Funded through payroll taxes, it functions as a federal pension system that replaces a portion of pre‑retirement earnings.
The agency determines the yearly adjustment using the average increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W). The index grew 3.9% in September and averaged about 3.6% over July‑September, compared with a 2.8% rise for 2026.
The announcement arrives amid persistent U.S. inflation, driven largely by energy market disruptions linked to conflicts in Ukraine and Iran, which have pushed crude oil prices above $100 a barrel.
Recently, diesel and other refined petroleum prices have reached record highs, further intensifying inflationary pressures.
A September AARP survey shows that most older Americans doubt the adequacy of the COLA; about three‑quarters of respondents aged 50 and over believe a 3.5% increase would not keep pace with rising costs.