Social Security Announces 3.6% Cost-of-Living Increase for 2027
Social Security has announced a 3.6% cost-of-living adjustment (COLA) for 2027. The increase is intended to help Social Security and Supplemental Security Income (SSI) payments keep pace with rising prices. Social Security beneficiaries will see the adjustment in benefits payable in January 2027, while increased SSI payments will begin on December 31, 2026 because January 1 is a federal holiday.
What the COLA Means for Beneficiaries
The 3.6% COLA applies to Social Security retirement, survivors, and disability benefits, as well as federal SSI payment levels. The actual dollar increase will vary by person based on the current benefit amount and any deductions. Beneficiaries should review their personalized COLA notice to see their new monthly payment.
2027 Work Incentive Updates
· Trial Work Period (TWP): The monthly earnings amount used to count a trial work month increases from $1,210 in 2026 to $1,270 in 2027.
· Substantial Gainful Activity (SGA)—non-blind: The monthly earnings guideline increases from $1,690 to $1,770 in 2027.
· Substantial Gainful Activity (SGA)—blind: The monthly earnings guideline increases from $2,830 to $2,950 in 2027.
How These Changes May Affect Work and Benefits
Higher TWP and SGA amounts may allow some people receiving Social Security Disability Insurance (SSDI) to earn more before reaching key work-incentive thresholds. However, these figures do not mean everyone can earn up to the listed amount without an effect on benefits. The outcome may depend on the benefit program, where a person is in the work-incentive process, countable earnings, impairment-related work expenses, subsidies, and other individual circumstances.
Contact AFP for Help
Contact AFP for more information about how the 2027 COLA, Trial Work Period amount, and SGA guidelines may impact your work and benefits. AFP can help you understand the changes, identify questions to ask, and consider next steps based on your individual situation.