What is the Social Security COLA?
COLA stands for cost-of-living adjustment. It is a yearly raise in Social Security and Supplemental Security Income (SSI) payments that helps benefits keep up with rising prices. Without it, the same monthly check would buy less every year. For 2027 the COLA is 3.6%, announced by SSA on October 14, 2026. It raises benefits for nearly 72 million people who get Social Security and about 7.3 million who get SSI (some people get both). SSA estimates that the average retired-worker benefit goes up by about $75 a month, from about $2,095 to about $2,170. The 2026 COLA was 2.8%.
How the COLA is calculated
The Social Security Administration (SSA) uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which the Bureau of Labor Statistics publishes. The COLA is the percentage increase in the average CPI-W for the third quarter (July, August and September) of the current year compared with the third quarter of the last year a COLA was set. The 2027 COLA, for example, compares the third quarter of 2026 with the third quarter of 2025.
If prices do not rise, there is no raise: in the SSA's words, if there is no increase, there can be no COLA. That is why the table above shows 0.0% for January 2010, 2011 and 2016. SSA announces the new COLA on the day BLS releases the September CPI, usually in mid-October. SSA announced the 2027 COLA of 3.6% on October 14, 2026.
When is the COLA paid?
- Social Security: the increase applies to benefits payable for December and arrives in your January payment (January 2027 for the 2027 COLA). Before 1983, COLAs started in June.
- SSI: the percentage is applied to the federal payment standard, and the higher payment comes earlier. The 2027 SSI increase is paid beginning December 31, 2026.
- Notice: SSA says people with a personal my Social Security account can see their COLA notice online from late November. Everyone else gets it by mail in December.
COLA history
COLAs have varied widely. The largest in this century was 8.7% for 2023, after 5.9% for 2022, when prices rose quickly. The smallest were the years with no increase: 2010, 2011 and 2016. The full table is above, with each row labeled by the January when the raise was received. Note that SSA's actuarial table labels each COLA by the December it took effect, one year earlier, so its 2026 row (3.6%) is the same raise as January 2027 here.
What else changes with the COLA?
Besides your benefit, SSA updates other yearly figures. Here are the 2027 figures next to 2026, from SSA's 2027 fact sheet.
| Item | 2026 | 2027 |
|---|---|---|
| Social Security COLA (received in January) | 2.8% | 3.6% |
| Taxable maximum for Social Security tax (per year) | $184,500 | $192,300 |
| Quarter of coverage: earnings for one work credit | $1,890 | $1,970 |
| Earnings limit before full retirement age (per year) | $24,480 | $25,560 |
| Earnings limit in the year you reach full retirement age (per year) | $65,160 | $67,920 |
| SSI federal payment standard, one person (per month) | $994 | $1,029 |
| SSI federal payment standard, couple (per month) | $1,491 | $1,544 |
| Maximum benefit for a worker retiring at full retirement age (per month) | $4,152 | $4,188 |
Before full retirement age, SSA withholds $1 in benefits for every $2 you earn above the limit; in the year you reach full retirement age it withholds $1 for every $3 above the higher limit, counting only the months before you reach that age. From the month you reach full retirement age, there is no earnings limit. A higher benefit does not always mean a bigger deposit: Medicare Part B premiums usually go up too, and they are generally taken out of the Social Security payment.
Frequently asked questions
When was the 2027 COLA announced and when does it start?
SSA announced a 3.6% COLA for 2027 on October 14, 2026. The Social Security increase applies to benefits payable for December 2026 and arrives with your January 2027 payment, for nearly 72 million people. The higher SSI payment, for about 7.3 million people, begins December 31, 2026. People with a my Social Security account can see their notice online from late November; everyone else gets a paper notice by mail in December.
Will my Social Security check go up by the full COLA percentage?
Your gross benefit rises by the COLA percentage. Your deposit can rise by less if your Medicare Part B premium or federal income tax withholding goes up. SSA rounds the new amount, so the calculator is an estimate.
Do SSI recipients get the same COLA?
SSA applies the same percentage to the SSI federal payment standard ($994 a month for one person in 2026 and $1,029 in 2027) and rounds it down to the whole dollar. The higher SSI payment arrives on December 31; the Social Security increase arrives with the January payment, between January 2 and late January depending on your payment date. If other income reduces your SSI, your increase is about the same dollar amount as the increase in the standard, not the percentage of your payment. Your SSI also depends on living arrangements and any state supplement.
This page gives general information and estimates, not financial, tax or legal advice. For your own benefit amount, sign in to my Social Security at ssa.gov or call SSA.