The 2027 cost-of-living adjustment for Social Security payments is 3.6 percent - and that means additional dollars each month for American retirees.
Recipients will see payments go up as much as $75, according to the most recent data from the Social Security Administration.
Social Security benefits are divided into three groups - retirement benefits for those who no longer work; survivor benefits for the spouses and children of deceased workers; and disability insurance for disabled workers, their spouses and children.
Retired workers are in line to get the biggest benefit bump - $75.15 based on their average payment of $2,087. Spouses of disabled workers will get the smallest bump - $16.70 based on their average payment of $463.94.
It may not be enough to meet the financial needs of retirees fighting inflation, Robert Laura, CEO of the Retirement Coaches Association, told The Independent in an email.
“A COLA increase of less than 4 percent may sound reasonable on paper, but it doesn't always reflect the financial realities retirees face,” Laura said. “I'm not sure where the government shops to fill its basket of goods, but it certainly doesn't feel like the same grocery store, gas station, or pharmacy many retirees visit.”
On average, retirees will get $838 more this year from the cost-of-living adjustment. Here’s how the increase will impact the 11 different groups of Social Security recipients, based on the most recent data.
Retirement benefits
- Retired workers: $75.15
- Spouses of retired workers: $35.52
- Children of retired workers: $34.61
Survivor benefits
- Children of deceased workers: $58.89
- Widowed mothers and fathers: $42.52
- Non-disabled widows and widowers: $49.95
- Disabled widows and widowers: $69.64
- Parents of deceased workers: $35.48
Disability benefits
- Disabled workers: $58.89
- Spouses of disabled workers: $16.70
- Children of disabled workers: $19.07
The 3.6 percent adjustment was in line with expert predictions, and serves as a way to help seniors combat cost-of-living increases.
Inflation is expected to cool to an average of 2.5 percent in 2027, considerably lower than 2026’s 3.5 percent projected average, according to financial services firm Morningstar.
