Each fall, the Social Security Administration announces its annual cost-of-living adjustment, or COLA, for the year ahead. On October 14, 2026, SSA announced a 3.6 percent COLA for 2027. The adjustment applies to Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), along with retirement and survivors benefits.
If you receive SSDI or SSI, or you are preparing to apply, here is what the 2027 COLA changes and what it does not.
What Is the COLA?
The COLA is a yearly adjustment that helps benefits keep pace with inflation. Social Security calculates it using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the year. When prices rise, benefits rise by a matching percentage the following year. The increase takes effect in January 2027 for Social Security benefits, including SSDI. For SSI, the increase takes effect with the payment issued on December 31, 2026.
The 2027 COLA Amount
For 2027, the cost-of-living adjustment is 3.6 percent. This is the largest adjustment since 2023.
To estimate your new monthly amount, multiply your current benefit by 1.036. Social Security also sends a personalized COLA notice in December, and you can view your new benefit amount in the Message Center of your my Social Security account. Your actual deposit may differ once any Medicare premium or tax withholding is applied.
What the COLA Means if You Receive SSDI
If you receive SSDI, your monthly payment rises by 3.6 percent beginning with your January 2027 payment. You do not need to take any action for the increase to apply.
When SSA announces the COLA, it also publishes the other benefit figures for the year. Two of these matter if you work while receiving SSDI.
Substantial Gainful Activity (SGA). SGA is the monthly earnings figure Social Security uses to decide whether work counts as substantial. For 2027, the SGA limit is $1,770 per month for most beneficiaries and $2,950 per month for beneficiaries who are blind. Earning above the limit can affect your eligibility, so the updated figure matters if you are working.
Trial Work Period (TWP). The Trial Work Period lets you test your ability to work without losing benefits. A month counts as a trial work month when your earnings reach a set amount. For 2027, that amount is $1,270.
These figures are updated each year based on national wage growth, and they are released at the same time as the COLA.
What the COLA Means if You Receive SSI
SSI is a needs-based program, and its federal benefit rate rises with the COLA. For 2027, the maximum federal SSI payment is $1,029 per month for an eligible individual and $1,544 per month for an eligible couple. Your actual SSI payment may be lower if you have other countable income. The increased SSI payment arrives on December 31, 2026.
If You Are Preparing to Apply for SSDI
Each year, Social Security also updates the amount you must earn to receive a work credit, which determines whether you are insured for SSDI. For 2027, you earn one credit for each $1,970 in covered earnings, up to four credits per year. This figure matters most if you are building or checking your work history before you apply.
What the COLA Does Not Change
The COLA changes dollar amounts. It does not change the medical standard for disability, and it does not affect whether your condition qualifies. If your claim is pending, the COLA does not speed up or slow down your decision. It sets the benefit amounts that apply for the coming year.
Speak With McKown and Myers
At McKown and Myers, we help Indiana claimants understand their Social Security Disability benefits and pursue the support they have earned. If you have questions about SSDI or SSI, or you need help with a claim, call 765-668-7531 or complete the contact form on our website to request a free consultation. You have earned these benefits. Let us help you secure them.