Social Security recipients will see rise in monthly payments next year
Summary
Social Security recipients will get a 3.6% increase in their monthly payments starting in January 2027, the largest raise in four years. This change will add about $75 a month, or $900 a year, to the average retiree's benefits and raise the income cap subject to Social Security taxes.Key Facts
- The 3.6% cost-of-living adjustment (COLA) is based on the Consumer Price Index (CPI) from July to September 2026.
- About 76 million people receiving retirement and disability benefits will get the payment increase.
- The average monthly benefit will rise by $75, totaling about $900 more per year.
- The income limit for Social Security payroll taxes will increase to $192,300 in 2027 from $184,500 in 2026.
- Income above this limit will not be taxed for Social Security purposes.
- The higher COLA provides more income to seniors but may speed up depletion of the Social Security trust fund.
- The trust fund for Social Security is projected to run out in about six years if current trends continue.
- Earlier estimates had predicted a smaller COLA increase of about 2.7% for 2027.
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