Largest Social Security COLA Announced Since 2023 – Will It Be Enough?
Category: Social Security
October 15, 2026 — Social Security and Supplemental Security Income (SSI) benefits for 76 million Americans will increase 3.6 percent in 2027. That represents the largest COLA since 2023, and is due to persistent high inflation.
Some components of the index used to base the COLA, such as energy, healthcare, and airfares, have increased far more than 3.6%, leaving millions of recipients dependent on Social Security in a tough place. An AARP survey found that only a handful (23%) of adults over age 50 think a 3.5 percent COLA will be enough to cover the higher prices they experience every day.
The worst news for some retirees is that their Part D Prescription Drug premiums will jump $50 or more per month next year. Lower cost plans are available, so it might be a good time to shop around. It is not official yet, but Medicare’s projections are that monthly Part B premium will increase to $209.50 by $6.60 in 2027.
The 3.6 percent cost-of-living adjustment (COLA) will begin in January 2027. Increased payments to about 7.3 million SSI recipients will begin on December 31, 2026.
The average benefit for all recipients amounts to $75/month. The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $192,300.
The lastest projections from the Social Security Trustees is that the retirement trust fund would be exhausted in 2032 — only six years from now.
The earnings limit for workers who are younger than full retirement age (see Full Retirement Age Chart) will increase to $25,560. ($1 is deducted from benefits for each $2 earned over $25,560.) The earnings limit for people reaching their full retirement age in 2027 will increase to $67,920. ($1 is deducted from benefits for each $3 earned over $67,920 until the month before the worker turns full retirement age.) (You do get this money back starting at Full Retirement Age).
There is no limit on earnings for workers who are full retirement age or older for the entire year.
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