Social Security's 3.6% raise for 2027: what it means in dollars, and the scams that follow

What's happened

The Social Security Administration (SSA) announced on October 14, 2026, that Social Security and Supplemental Security Income (SSI) payments will rise by 3.6% in 2027. It's the biggest cost-of-living adjustment (COLA) since 2023, when benefits rose 8.7%, and follows 2.8% for 2026.

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing July to September 2026 with the same months in 2025. The SSA says the increase reaches about 76 million people.

The average retirement benefit goes up by about $75 a month, according to coverage of the announcement by CNBC, Fox Business and Yahoo Finance. Social Security payments at the new rate start in January 2027. SSI recipients get theirs first, on December 31, 2026, because January 1 is a holiday.

Who's affected

Everyone getting Social Security retirement, survivor or disability benefits, and everyone on SSI. You don't need to do anything to get the increase.

Other figures change too. Social Security's yearly figures for 2027, as listed by syndicated columnist Tom Margenau from the SSA's announcement, include:

• SSI: the federal payment for one person rises from $994 to $1,029 a month.
• Earnings limit: if you're under full retirement age all year, you can earn $25,560 before $1 in benefits is held back for every $2 over the limit. In the year you reach full retirement age, the limit is $67,920.
• Taxable maximum: earnings up to $192,300 are subject to Social Security tax, up from $184,500.
• Work credits: one credit takes $1,970 of earnings, and four, the yearly maximum, take $7,880.

What it means in dollars: a worked example

This is an illustration, not a real case.

Gloria gets $2,000 a month from Social Security. A 3.6% COLA adds $72, so her benefit becomes $2,072 a month, or $864 more over 2027.

Most people have their Medicare Part B premium taken from their Social Security payment, so the amount that reaches the bank will rise by less. When we checked on October 27, 2026, the 2027 Part B premium hadn't been announced. The Medicare Trustees projected it at $209.50 a month, up $6.60 from $202.90. If that's the final figure, Gloria's deposit would go up by about $65.40 a month, not $72.

Your COLA notice will show your own new amount, and the Part B premium taken off it, once the 2027 figures are confirmed.

The scams that follow COLA news

Every fall, scammers use the COLA as a reason to get in touch. Social Security's Office of the Inspector General (OIG) has warned about letters on fake SSA letterhead telling people to call a toll-free number to "activate" a benefit increase. AARP reports that past messages asked people to pay $100 or share personal information to unlock the raise, and some linked to sites that look very like the SSA's.

The OIG's message is simple: the COLA is automatic, and "Social Security will never threaten, scare, or pressure you to take an immediate action."

What to do now

1. Ignore anything asking you to activate, confirm or pay for your COLA. There's no fee and no form.
2. Check your notice in your own account. Notices go out by mail in early December, and you can read yours online in your my Social Security account. Type ssa.gov into your browser yourself, rather than using a link in a message.
3. Never give your Social Security or bank number to someone who contacts you. If you're unsure, hang up and call the SSA at 1-800-772-1213.
4. Report scams to the OIG at oig.ssa.gov and to the FTC at ReportFraud.ftc.gov.
5. If you still work, check your 2027 earnings against the new limit so you're not surprised by withheld benefits.

FAQs

When will I see the higher payment?

In your January 2027 Social Security payment, on your usual payment date. SSI recipients get the higher amount on December 31, 2026.

Does the $90 Medicare rebate have anything to do with the COLA?

No. CMS says the $90 Part B premium rebate is a one-time payment in October 2026 for eligible people with Original Medicare. It doesn't change your COLA or your 2027 premium.

Is 3.6% enough to keep up with prices?

It's meant to match the rise in the CPI-W over the past year. Yahoo Finance noted that overall consumer prices were up 3.7% in the latest annual figures, so the raise roughly keeps pace, but your own costs may be rising faster or slower.

Sources: SSA: Social Security announces 3.6 percent benefit increase for 2027 (October 14, 2026), SSA: 2027 COLA fact sheet, Fox Business: SSA announces 3.6% COLA for 2027, Yahoo Finance: 3.6% COLA for 2027, Tom Margenau: Social Security COLA for 2027, MOAA: Trustees' Part B projections, SSA OIG: fake letters to activate benefit increases, AARP: Social Security scams with a COLA twist, CMS: $90 premium rebate FAQs