COLA Increase 2027: What SSDI and SSI Beneficiaries Should Know 

Last week, the Social Security Administration (SSA) announced that the cost-of-living adjustment (COLA) for 2027 will be 3.6%.  

This is the largest increase since 2023, when COLA rose by 8.7% due to inflation, marking the largest increase in nearly 40 years. COLA for 2026 was 2.8%.  

COLA is an annual percentage increase applied to Social Security benefits to help keep pace with inflation and rising living costs. 

According to CNBC, the 2027 COLA increase is larger than last year’s due to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) between the third quarters of 2025 and 2026. The U.S. Bureau of Labor Statistics publishes the CPI-W, a monthly measure of inflation.

“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Social Security Commissioner Frank J. Bisignano said in a statement. 

Those receiving Social Security retirement benefits will see an average increase of $75 per month.  

Your COLA 2027 Notice 

If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, you can view your 2027 COLA increase through your my Social Security  my Social Security account account in late November. You can also expect to receive a notice by mail in December.

Increased monthly benefit payments will start on December 31st, 2026, for SSI and January 2027 for SSDI.  

Substantial Gainful Activity 2027 

Another important update for 2027 is the increase in the Substantial Gainful Activity (SGA) earnings limit, which determines how much a person can earn each month before their work activity may affect their eligibility for SSDI benefits. 

These limits apply to people applying for SSDI or SSI. Once Social Security approves your claim, different work rules apply: 

• SSDI: You can test working for 9 months and keep your full check no matter how much you earn. After that, the SGA limit can affect your benefits. 

• SSI: The SGA limit no longer applies. Instead, your check is reduced as you earn more. Social Security ignores the first $85 you earn each month. That $85 is a $20 general exclusion plus a $65 earned income exclusion, and it assumes you have no other income. After that, your check goes down $1 for every $2 you earn.

Social Security adjusts the SGA limits each year based on the national average wage index. SSI payment amounts are adjusted each year by the cost-of-living adjustment. 

There are strict rules for working while you receive benefits. If you exceed these limits, Social Security could reduce or stop your benefits. Contact the Social Security Administration before you start working or change your work to understand how the rules apply to you. 

Fierce Advocacy 

Understanding the 2027 COLA increase can help individuals receiving SSDI or SSI benefits better plan their monthly budgets and prepare for changes to the benefits they rely on to cover everyday essentials. 

Navigating the Social Security disability process can be complex and overwhelming, especially when you’re focused on your health and well-being. At Nyman Turkish, we are committed to helping you pursue the benefits you deserve while providing compassionate guidance and support every step of the way. 

Call us at 877-529-4773 or visit our website for a FREE case evaluation.