Social Security announces a 3.6% increase for 2027

The Social Security Administration announced a 3.6% adjustment for 2027 on October 14. It covers 76 million people, some of whom receive both Social Security and Supplemental Security Income, or SSI. [1]

Two effective dates

Social Security benefits will rise in January 2027. Higher SSI payments will begin on December 31, 2026, according to the agency. [1]

How the rate is calculated

Reuters explains that the adjustment uses the annual comparison of the third-quarter Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. This calculation differs from the headline inflation rate for September alone. [2]

Payments and purchasing power

The increase exceeds the 2.8% applied for 2026, Reuters notes. It raises the amounts paid; its effect on purchasing power will also depend on changes in recipients’ expenses. [2]