The Social Security Administration will make several changes in 2027 that affect people receiving benefits, workers who claim Social Security before full retirement age and higher earners paying into the program. The most visible change is a 3.6% cost-of-living adjustment, or COLA, for Social Security benefits.
The COLA applies to nearly 72 million Social Security beneficiaries, according to the agency. It takes effect with benefits payable in January 2027. The increase also applies to Supplemental Security Income, or SSI, a federal program for people with limited income and resources. About 7.3 million SSI recipients will receive the increase beginning with payments scheduled for Dec. 31, 2026, the agency said.
What the 2027 increase changes
Social Security retirement benefits will rise by about $75 a month on average, according to the administration. The exact dollar increase will depend on the benefit a person already receives. The COLA adjusts current payments for inflation; it does not by itself change the formula used to calculate a new retiree’s initial benefit.
| Change for 2027 | Amount or effective date |
|---|---|
| Social Security COLA | 3.6% |
| Average monthly retirement-benefit increase | About $75 |
| SSI increase begins | Dec. 31, 2026 |
| Earnings limit for some working beneficiaries | $25,560 |
Another change concerns beneficiaries who continue working after claiming Social Security. People who have not reached full retirement age during 2027 will be able to earn up to $25,560 before the annual earnings test applies. That amount is up from $24,480 in 2026. The earnings test can temporarily withhold part of a person’s benefit when earnings exceed the applicable limit.
Rules for people nearing retirement
Full retirement age, often abbreviated as FRA, is the age at which a person qualifies for 100% of the benefit calculated from their work record. The age varies by birth year. Social Security uses a worker’s earnings history and other rules to determine the amount of the benefit, so the COLA does not produce the same payment for every beneficiary.
The administration’s annual adjustments also affect workers and people earning near the top of the taxable wage scale. The 2027 changes can mean larger payments for some beneficiaries, while other workers may face higher payroll-tax exposure or different thresholds. The administration said the earnings-limit adjustment is part of a broader set of changes that reset in January.
- Current Social Security beneficiaries: Their payments will receive the 3.6% COLA beginning with January 2027 benefits.
- SSI recipients: Their increased payments begin with the Dec. 31, 2026, payment date.
- Working beneficiaries below full retirement age: The annual earnings limit rises to $25,560 in 2027.
The COLA is separate from decisions about when a worker first claims retirement benefits. It also does not determine an individual’s full retirement age or replace the earnings history used to calculate benefits. Those factors continue to affect the payment amount for people who begin receiving Social Security in 2027.
