This is official confirmation of the estimates we wrote about in early October: the cost-of-living adjustment (COLA) for 2027 will be 3.6 percent, compared to 2.8 percent the previous year. For Polish retirees in the U.S. and their families, this is concrete information for their household budget, but it is worth knowing what exactly the SSA announced and what is not yet known.
What the SSA announced
In an announcement dated October 14, 2026, the Social Security Administration reported that the 3.6 percent increase will apply to Social Security and SSI (Supplemental Security Income) benefits. The increased Social Security benefits will take effect starting January 2027. According to the SSA, the average retirement benefit will increase by 75 dollars per month, and the raise will affect nearly 72 million Social Security beneficiaries. Increased SSI payments will begin on December 31, 2026, and will cover approximately 7.3 million people.
What this looks like in numbers
The adjustment is applied as a percentage to the existing benefit. For illustration: a benefit of 1,000 dollars a month would increase by 36 dollars, and a 2,000-dollar benefit by 72 dollars. This is a simple calculation, not an individual computation, and you should check your own amount in the SSA COLA notice. According to the SSA announcement, COLA notices will be available online starting in late November for my Social Security account users; individuals without an account who wish to receive electronic notices should opt for paperless by November 18, while everyone else will receive them by mail in December.
Other amounts for 2027
Along with the COLA, the SSA publishes a set of annual parameters. According to the SSA fact sheet for 2027 (2026 values in parentheses):
- maximum earnings subject to the Social Security tax: 192,300 dollars (184,500),
- earnings required for a quarter of coverage: 1,970 dollars (1,890),
- earnings limit for individuals below full retirement age: 25,560 dollars per year (24,480),
- earnings limit in the year they reach full retirement age: 67,920 dollars per year (65,160),
- maximum benefit for a person retiring at full retirement age: 4,188 dollars per month (4,152),
- federal SSI rate: 1,029 dollars per month for an individual (994) and 1,544 dollars for a couple (1,491).
What the announcement does not determine
A higher adjustment does not necessarily mean an equally higher take-home payout. The Medicare Part B premium is usually deducted from the Social Security benefit, and the October 14 SSA announcement does not state its amount for 2027. This amount is announced separately by Medicare, and until it is published, it is impossible to reliably calculate how much of the raise will stay in your wallet. It is worth checking the official amount after it is announced. Other factors, such as benefit taxes, depend on individual tax situations.
Individuals planning to retire or working while receiving benefits should pay attention to the higher earnings limits, and consult a financial advisor or accountant if they have doubts. This text is for informational purposes and does not constitute financial or tax advice. You can find our previous article on preparations for the announcement on our website as the 2027 COLA preview.
Polish accountants and financial advisors from the Polish Pages directory will help you with annual budget planning and retirement settlements.
