Social Security beneficiaries, military retirees and people receiving veterans benefits will see a 3.6% cost-of-living adjustment, or COLA, in 2027.
The Social Security Administration’s COLA announcement Wednesday sets the rate of increase for about 72 million Social Security beneficiaries, but also for military retirees and people receiving veterans benefits. The increase goes into effect in January and is 0.8% higher than the 2.8% COLA in 2026.
It’s the biggest increase in four years.
Officials estimate that on average, the monthly Social Security benefit will increase by $75.
As an example, a military retiree who receives $2,500 in retired pay will see a COLA increase of about $90 per month.
For a veteran receiving $1,500 per month in benefits, the increase would be about $54 in 2027.
In 2024, Congress passed legislation that ties increases in veterans’ benefits to the rate of Social Security increases. The cost-of-living increase applies to disability compensation, clothing allowances and dependency and indemnity benefits, as well as some other Department of Veterans Affairs assistance programs.
The COLA is designed to ensure benefits keep pace with inflation. The calculation is based on the Consumer Price Index, which tracks the cost of a wide range of items and calculates inflation and changes in the cost of living.
The 2026 COLA was 2.8%, a few ticks higher than the 2025 COLA of 2.5%.
Those with personal “my Social Security” accounts can view their COLA notice online starting in late November, a few weeks earlier than those who receive paper notices in the mail, officials said.
