US raises Social Security benefits by 3.6 pc
Washington: The United States has announced a 3.6 per cent increase in Social Security benefits for 2027, providing an average additional $75 a month to retired workers as millions of Americans struggle with rising living costs.
The Social Security Administration (SSA) said on Wednesday (local time) that nearly 72 million beneficiaries will receive higher payments beginning in January, while approximately 7.3 million people receiving Supplemental Security Income (SSI) will see their increases reflected in payments beginning December 31.
The annual cost-of-living adjustment, commonly known as COLA, is designed to help protect the purchasing power of retirees, people with disabilities and other eligible beneficiaries against inflation.
The adjustment will affect approximately 76 million Americans across the two programmes, with some individuals receiving benefits under both.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Social Security Commissioner Frank J. Bisignano said.
“Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people,” he added.
According to official figures, the estimated average monthly retirement benefit will rise from $2,095 to $2,170 in January 2027.
For retired couples where both spouses receive benefits, the average combined monthly payment is expected to increase from $3,238 to $3,355.
The average monthly benefit for workers receiving Social Security Disability Insurance will increase from $1,642 to $1,701.
The adjustment also raises federal SSI payment standards, with the maximum monthly payment for an eligible individual increasing from $994 to $1,029.
For an eligible couple, the corresponding amount will rise from $1,491 to $1,544.
The administration said beneficiaries with personal online Social Security accounts will be able to view their updated benefit notices beginning in late November.
Those who have not enrolled in paperless notifications will receive their notices by mail during December.
The personalised notices will explain the revised monthly payment, the date it takes effect and any applicable deductions.
Beneficiaries enrolled in Medicare will also receive information about changes to their premiums, which can affect the amount deposited into their accounts each month.
The administration said information about Medicare changes for 2027 would be available through the official Medicare website.
The 3.6 per cent adjustment is higher than the 2.8 per cent increase implemented for 2026, reflecting changes in consumer prices over the relevant measurement period.
The annual adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, compiled by the Department of Labor’s Bureau of Labor Statistics.
The increase is automatic under federal law and does not require separate congressional approval.
The Social Security Administration also announced changes to several earnings-related thresholds for 2027.
The maximum annual earnings subject to Social Security payroll taxes will increase from $184,500 to $192,300.
For beneficiaries below full retirement age who continue working, the annual earnings limit before benefit withholding begins will rise from $24,480 to $25,560.
The increase will also be relevant to eligible Indian-American retirees and other beneficiaries of Indian origin who receive US Social Security payments. Eligibility and payment amounts depend on individual contribution records and programme rules, rather than nationality alone.