Social Security recipients in the United States are set to receive a 3.6% cost-of-living adjustment (Cola) in 2027, which will increase retirement benefits by an average of $75 per month. This adjustment comes as millions of Americans continue to face rising prices.
According to the Social Security Administration (SSA), nearly 72 million Social Security beneficiaries will begin receiving higher payments in January 2027. Additionally, approximately 7.3 million Supplemental Security Income (SSI) recipients will see increased payments starting on 31 December 2026.
SSA commissioner Frank J Bisignano stated on Wednesday that this adjustment will be implemented for 76 million Americans, aiming to provide them with greater financial stability. The announcement follows a period of rising consumer prices, with an annual inflation rate of 3.7% in September, up from 3.4% in August, as reported by the Bureau of Labor Statistics.
Inflation reached its highest level since a 4.2% peak in May. Gasoline prices increased by 34% from last year, contributing to over half of the overall price increases, largely attributed to the US's war on Iran. Fuel oil costs rose by 74%, and air travel prices increased by 22.4%.
Shannon Benton, director of the advocacy group Senior Citizens League, noted that while Social Security increases are intended to keep pace with inflation, they often do not cover rising costs such as healthcare, housing, and prescription drugs, particularly for senior citizens. Benton commented that this adjustment offers "a little breathing room but won’t undo the damage of what we’ve seen this decade."