Social Security and SSI recipients will get confirmation in the coming weeks of how much more money they’ll have to work with next year.
In October, the Social Security Administration will announce the annual cost-of-living adjustment, revealing exactly how much Social Security and SSI payments will increase in 2027.
In 2026, Social Security benefits rose by 2.8%, but forecasters expect a larger increase for 2027. The increase will largely reflect higher inflation, with energy and oil prices up sharply from a year ago.
The 2027 Cost of Living Adjustment figure, calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), is based on average prices across three months: July, August and September 2026. That average is compared with the same period in 2025 to determine how much benefits will increase.
While inflation is higher than a year ago, it has started to cool in recent months. The Senior Citizens League lowered its forecast from 3.8% in July to 3.6% last month, but the group is still projecting a larger increase in Social Security payments next year.
AARP‘s forecast increase stands slightly lower at a 3.5%.
What does that mean for beneficiaries? According to AARP, the average monthly Social Security benefit for a retiree was $2,086 in July. A 3.5% COLA would raise that amount by around $73.
Recipients don’t need to apply for the COLA. Once the final increase is announced, the SSA will automatically apply it to eligible Social Security and SSI payments. Beneficiaries will also receive a notice detailing their new payment amount before the increase takes effect.
Here’s what we know about key COLA dates over the coming months.
Key dates to know
Sept. 11: The August CPI-W is released by the Bureau of Labor Statistics (BLS), giving analysts the second of three inflation readings used to refine COLA projections for 2027.
Oct. 14: September’s CPI-W, released by the BLS, is the third and final piece of data the SSA needs to calculate the COLA. The SSA is also expected to announce the official 2027 COLA that day. Last year’s announcement was delayed by the government shutdown, but a shutdown is unlikely to cause a delay this year after President Trump signed legislation funding the government through Dec. 11, well past the COLA release date.
November: Medicare Part B premiums are announced by the Centers for Medicare and Medicaid Services (CMS). For Social Security recipients enrolled in Medicare Part B, the premium is typically deducted directly from their monthly payment. CMS generally announces the following year’s premium in November, although the exact date can vary.
December 31 2026 – January 2027: Beneficiaries begin receiving payments with the increase added. Social Security payments generally go out on the second, third or fourth Wednesday of the month, based on the beneficiary’s birthday. However, people who began receiving Social Security before May 1997, as well as those who receive both Social Security and SSI, generally receive their Social Security payment on the third of the month.
SSI payments normally arrive on the first of the month, but this year the January payment will arrive on Dec. 31, 2026, because Jan. 1 is a federal holiday.
