Social Security officials on Oct. 14 announced the largest cost-of-living adjustment (COLA) for retired beneficiaries in four years, going into effect starting next year.

The 3.6 percent COLA will apply to the approximately 76 million Social Security recipients and another 7.3 million who receive Supplemental Security Income (SSI), the Social Security Administration (SSA) said. It amounts to roughly a $75 average increase each month.

When the New Payments Start

The benefit increase for Social Security recipients will start in January 2027, the agency said.

According to a calendar of the payments, the first retirement benefits for recipients whose birthday occurs on the first through the 10th of a month will be sent on Wednesday, Jan. 13, 2027. People born from the 11th to the 20th will receive their benefits on Jan. 21, and people born from the 21st to the 31st will get their payment on Jan. 27.

The SSA said in a news release that adjusted SSI payments for January will be sent on Dec. 31, 2026. The next SSI payment for 2027 will be sent on Feb. 1, the calendar shows.

Those who have received Social Security payments from before May 1997 or people getting both Social Security and SSI will receive their adjusted payment on Dec. 31, 2026, according to the calendar.

The SSA stated that “other adjustments” will take effect in January of each year, which are based on increases in average wages.

In an example, the agency said that the maximum amount of earnings that are subject to Social Security taxes will increase from $184,500 this year to $192,300 in 2027.

Beneficiaries will get a “simplified, one-page COLA notice, which uses plain and personalized language, and provides exact dates and dollar amounts of an individual’s new benefit amount and any deductions,” the SSA said.

People with online Social Security accounts can view the COLA notice starting online in November. Those without paperless notices will get the COLA letter in the mail in December.

Why the COLA Increased

The SSA generally announces the annual COLA to benefits in mid-October ​after the Bureau of Labor Statistics publishes the consumer ​price index, a measure of inflation, for September.

The COLA is determined by consumer inflation readings for July, August, and September. That index rose by 3.9 percent in September and ​averaged about 3.6 percent for the three months of ​July, August, and September.

Inflation increased ​again this year ​after the ⁠United States and Israel attacked Iran and Tehran attempted to close down the Strait of Hormuz, sending energy prices higher. The price of crude oil has surged to more than $100 per barrel, and U.S. gasoline and diesel prices have remained elevated in recent weeks.

Largest COLA in 4 Years

Figures released by the SSA show that the COLA for 2027 will be the highest in four years, since an 8.7 percent adjustment went into effect for 2023’s payments. The COLA was announced in 2022 as inflation also soared significantly during that year amid the COVID-19 pandemic and its aftermath.

A year before that, the SSA announced a COLA of 5.9 percent, also driven by inflation sparked by COVID-19.

The Oct. 14 announcement marks the sixth year in a row in which COLA has increased by at least 2.5 percent. For payments sent out in 2026, the increase was 2.8 percent, the increase in 2025 was 2.5 percent, and 2024 had a 3.2 percent adjustment, according to the agency.

AARP Responds

Senior advocacy group AARP, citing SSA data, said that the average monthly benefit for a retired worker will increase from about $2,095 to $2,170.

Meanwhile, the average survivor benefit for a widow or widower is expected to increase by about $69, from $1,936 to $2,005, according to the group. The average Social Security Disability Insurance benefit will be increased from $1,642 to $1,701, according to SSA estimates.

AARP CEO Myechia Minter-Jordan said in a statement on Oct. 14 that the COLA is “critically important” for some seniors because it helps “millions of Americans keep up with rising costs for groceries, routine bills, healthcare and other everyday expenses.”