# 2027 Social Security COLA Set at 3.6%

> Social Security's 2027 cost-of-living adjustment will rise 3.6% for retirees, matching economist David Payne's estimate.
- Title: 2027 Social Security COLA Set at 3.6% · Kiplinger | Shortify
- Summary: Social Security's 2027 cost-of-living adjustment will rise 3.6% for retirees, matching economist David Payne's estimate. Social Security's 2027 COLA…
- Keywords: social security, colas, 2027, retirees, social security administration, david payne, consumer price index, Social, Security, COLA, Set, Kiplinger
- Source: Kiplinger — https://kiplinger.com/retirement/social-security/2027-social-security-cola-is-3-6-percent
- Published: 2026-10-14T15:55:28+00:00
- Read time: 1 min
- Topics: social security, colas, 2027, retirees, social security administration, david payne, consumer price index
## 2027 Social Security COLA
The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, matching economist David Payne's final estimate.
## Monthly Impact for Retirees
The average retiree will receive an additional $75 per month, raising their January 2027 payment to $2,170 from $2,095.
## Married Couples' Benefits
Married couples will see an average increase of $117, raising their monthly benefit to $3,355 from $3,238.
## COLA Context
The 3.6% increase is 0.8% higher than 2026's 2.8% and near the long-term historical average of 3.8% since 1975.
## Economist's Rationale
David Payne, Kiplinger's staff economist, projected 3.6% due to high energy prices bleeding into other categories.

> high energy prices bleed into other categories
## Inflation Data
September's inflation numbers showed gasoline prices rose 9.1%, accounting for over half of the monthly all items increase.

> the index for gasoline rose 9.1 percent in September
## Retirees' Perspective
Martha Shedden, co-founder of the National Association of Registered Social Security Analysts, says retirees shouldn't interpret higher COLAs as more spending money.

> Retirees shouldn't interpret a higher COLA as having more spending money
## Historic COLA Trends
The COLA hit a low of 0.0% in 2016 and surged to 8.7% in 2023, with the biggest increase at 14.3% in 1980.

> the biggest COLA increase was 14.3% back in 1980
## Earnings Test Details
The SSA withholds $1 of benefits for every $2 earned over $25,560 in 2027, raising monthly withholdings to $2,130.

> the SSA temporarily withholds $1 of your benefits for every $2 earned over $25,560
## Social Security Tax Cap
The 2027 Social Security tax wage cap is $192,300, up $7,800 from 2026's $184,500.

> the new Social Security tax limit is $192,300 in 2027
## COLA Calculation Method
The COLA is calculated using the CPI-W for the third quarter, with the 2027 figure derived from July, August, and September 2025-2026 data.

> The COLA is now determined by the inflation observed in July, August, and September in the CPI-W
## What Happens Next
Retirees will see their benefits adjusted for inflation in 2027, preserving purchasing power without increasing actual spending.

> the objective is preservation of purchasing power, not an increase in purchasing power
## Key takeaway

Social Security's 2027 COLA increases to 3.6% to preserve purchasing power for retirees.