Social Security sets its 2027 COLA increase at 3.6%. Here's what that means for your benefits.
Updated on: October 14, 2026 / 10:58 AM EDT / CBS News
TL;DR
- Over 75 million Americans will receive a 3.6% increase in their monthly Social Security benefits for 2027.
- This COLA is the largest annual boost in four years, intended to address higher inflation.
- The average Social Security payment is expected to increase by about $75 to $2,170 per month.
- Critics argue that the 3.6% COLA is insufficient to cover rising costs and restore lost purchasing power for seniors, citing higher inflation in healthcare.
- Advocates suggest using the Consumer Price Index for the Elderly (CPI-E) instead of the current CPI-W to better reflect seniors' spending habits.
- The poverty rate among seniors has been increasing, partly due to rising healthcare costs and lagging benefits.
- Social Security's trust fund is projected to become insolvent in six years, potentially leading to benefit cuts.
- Around 7.3 million Supplemental Security Income recipients will also see the new COLA starting December 31, 2026.