Each fall, the Social Security Administration announces the cost-of-living adjustment (COLA) for the following year's benefits.
To determine how much to increase monthly payments for the more than 75 million Americans who rely on them, the agency uses the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Data from the third quarter of the previous year is compared with the third quarter of the current year.
The COLA for 2026 was 2.8%, increasing benefit checks by an average of about $56 per month.
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When will the 2027 Social Security COLA be announced?
The 2027 Social Security COLA should be announced in mid-Oct. 2026, in conjunction with the release of the CPI-W data from Sept. 2026.
Beneficiaries will be notified of their specific benefit rate in Dec. 2026, with the COLA reflected in most checks starting in Jan. 2027.
How much will the Social Security COLA be in 2027?
The official COLA will not be announced until October, based on third-quarter CPI data. Using March CPI-W data released on April 10, the Senior Citizens League (TSCL) has predicted the 2027 COLA would be 2.8%, the same as in 2026. That would bump the average benefits check by $56.69, from $2,024.77 to $2,081.46.
In a statement, TSCL executive director Shannon Benton raised concerns that the adjustment would be insufficient for seniors.
"Americans are right to worry about our current COLA projection," Benton said. "The fact is that most senior households already get by on only about 58% as much income as their working-age counterparts, and you'd be hard-pressed to find a middle-class or working-class American who thinks the economy is doing well right now, especially as oil prices rise."
Looking at the same numbers, Independent policy analyst Mary Johnson forecast an adjustment of 3.2%, CNBC reported.
The COLA has averaged about 3.1% over the last decade, according to the SSA, although that figure is skewed by the post-COVID highs of 5.9% in 2022 and 8.7% in 2023.
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When will I see the increase in my Social Security check?
Social Security benefit checks should reflect the COLA starting in January 2027. Beneficiaries receive checks based on their date of birth:
- If you were born between the 1st and the 10th of the month, you should see the COLA in the check that arrives on Jan. 13, 2027.
- If you were born between the 11th and 20th of the month, expect it on Jan. 20, 2027.
- If you were born between January 21st and the end of the month, the first new check should arrive on Jan. 27, 2027.
Some recipients will receive the increase sooner, however.
- If you start receiving Social Security benefits before May 1998, your first check of the year should arrive on Jan. 3, 2027.
- If you receive Supplemental Security Income (SSI), those benefits are typically paid on the first of the month. Since New Year's Day is a federal holiday, those checks will be distributed on Dec. 31, 2026.
The full calendar of Social Security payment dates is available online.
Changes to Social Security in 2026
While the new COLA won't appear on benefit checks until 2027, some changes to Social Security have already taken effect.
1. Full retirement age has gone up: At full retirement age (FRA), you can receive 100% of your Social Security benefits. For individuals born in 1960 or later, the FRA in 2026 is 67. This completes the phased-in transition from the previous age of 65. (People born on Jan. 1 should refer to the previous year, however.)
2. The Social Security tax limit has increased: The maximum taxable earnings limit for Social Security in 2026 is $184,500, up from $176,100 in 2025.
3. You can earn more while still collecting benefits: The Social Security earnings test limits how much you can receive while still working.
- For 2026, if you are under FRA for the entire year, the yearly earnings limit is $24,480. The SSA will deduct $1 from your benefit payments for every $2 you earn above that amount.
- If 2026 is the year you reach FRA, the limit on your earnings is $65,160, and $1 in benefits will be deducted for every $3 you earn above that amount. (Only earnings up to the month before you reach your full retirement age are counted, not your earnings for the entire year.)
- After you reach your FRA, you can earn any amount without reducing your Social Security benefits.
When can I start collecting Social Security?
You can begin collecting Social Security at age 62, although the amount you receive will be higher the longer you wait to apply, up until age 70.
You can begin receiving 100% of your Social Security benefits when you reach full retirement age (FRA). As of Jan. 2, 2026, the FRA for anyone born in or after 1960 is 67. This is the final step in a long-term transition from age 65. (The FRA for Individuals born in 1959 is 66 and 10 months)
| Year of birth | Social Security full retirement age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and two months |
| 1956 | 66 and four months |
| 1957 | 66 and six months |
| 1958 | 66 and eight months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
FAQs
How is the Social Security COLA calculated?
The COLA is based on the year-over-year activity of the CPI-W, which measures the prices of food, clothing, shelter, transportation, medical care, recreation and other goods and services. If there has been an increase in the CPI-W from Q3 of the previous year to Q3 of the current year, that amount (rounded to the nearest tenth of a percent) becomes the COLA.
Can the COLA ever be negative?
No, the COLA will never go down. If the CPI-W decreases, Social Security benefits will remain unchanged. Since the system was started in 1975, there have been three years with no adjustments: 2010, 2011 and 2016.
Are Social Security benefits taxable?
Social Security payments have been taxable since 1984, but whether your check is taxed depends on how much you earn: If your income is under $25,000 ($32,000 for married couples), your benefits are not taxed. If you earn between $25,000 and $34,000 as a single filer (between $32,000 and $44,000 as a married couple), up to half of your benefits can be taxed. And if you earn above $34,000 ($44,000 for married couples), up to 85% of your benefits can be taxed.
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