Social Security Benefits Rise in 2027: Is Your Retirement Plan Ready?
November 2, 2026
By Matthew Anderas
Director - WM Business Development
Last week, Tom previewed the Federal Reserve’s upcoming interest-rate decision and the challenge of balancing economic growth with persistent inflation. In a 10-2 vote last Wednesday, the Fed held interest rates steady at a range of 3.75%-4.00%, with two members voting in favor of a rate hike. The Fed noted that economic activity remains strong, supported by resilient consumer spending, solid job growth, and robust business investment.
At the same time, inflation remains above the Fed’s 2% target as prices for goods and services continue to climb. While the Fed is focused on controlling future inflation, consumers have been forced to adjust their budgets and manage higher costs for everyday expenses. To help retirees who cannot rely on wage increases, the Social Security Administration (SSA) annually adjusts benefits through cost-of-living adjustments (COLAs).
Understanding the 2027 Increase
In 2027, Social Security recipients will receive a 3.6% cost-of-living adjustment. The increase will raise the average retired worker’s monthly benefit from $2,095 to $2,170, or approximately $75 per month. While an additional $75 per month may not sound significant, the 2027 COLA represents the fifth largest percentage increase in the past 35 years.
To determine COLA, the SSA measures year-over-year changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers. While this calculation measures broad changes in consumer prices, it may not fully reflect the spending patterns of every retiree. For example, retirees often devote a larger share of their income to healthcare and insurance costs, both of which have historically experienced above-average price increases.
Beyond COLA: Review Your Financial Plan
All told, the increase in benefits will offer some relief for retirees that may be burdened by higher expenses. However, the COLA announcement also serves as a reminder to revisit your financial plan and ensure retirement goals remain on track. Retirees should consider whether their income continues to support their spending needs, how much they are withdrawing from investment accounts, and whether those withdrawals are sustainable over the long term.
If you are approaching retirement or have not recently completed a financial plan, now may be an ideal time to meet with your advisor. A well-designed financial roadmap can help align your resources with your retirement goals and provide greater confidence in your long-term financial future. Your successful retirement matters to us.