US retirees to receive 3.6% Social Security increase in 2027

In 2027, approximately 76 million Americans who receive Social Security and Supplemental Security Income benefits will see their monthly payments increase by 3.6%, according to the Social Security Administration. This is a 3.6% annual cost-of-living adjustment, up from the previous year's 3.4% increase. The decision comes after the Bureau of Labor Statistics released the September Consumer Price Index, which showed the CPI-W index, used to calculate the adjustment, rising 3.9% in September and averaging about 3.6% for July, August, and September.

The increase will take effect in January for 72 million Social Security recipients and by December 31, 2026, for nearly 7.3 million SSI beneficiaries. Some individuals receive both Social Security and SSI benefits. Inflation has been on the rise this year, with the main CPI index increasing 3.7% in September, up from 3.4% in August.

The main contributors to the inflationary pressures include the disruption in global energy markets caused by the US and Israel attacking Iran, and the record-high prices of refined petroleum products like diesel fuel.