Social Security Administration Announces Cost-Of-Living Adjustment (COLA) For 2027

Americans receiving Social Security Disability Insurance (SSDI) benefits will see a 3.6% increase in their monthly benefit beginning in January 2027, according to the Social Security Administration (SSA). The cost-of-living adjustment (COLA) is designed to help benefits keep pace with rising living costs.

"For someone living with a disability, a few extra dollars a month can decide whether the electric bill gets paid on time," said Steve Perrigo, vice president at Allsup. "This year’s COLA won’t close every gap, but it’s real help for people who’ve felt rising prices at the grocery store, the pharmacy and the gas pump."

What To Expect In 2027

Based on the 3.6% COLA, the average monthly SSDI benefit is expected to rise from approximately $1,642 in 2026 to about $1,701 in 2027, an increase of roughly $59 per month or $708 annually, before deductions. For a worker with a disability who has a spouse and one or more children, the average family benefit is expected to rise from $2,970 to $3,077 per month. Find more detail on the SSA’s COLA fact sheet for 2027.

Nearly 72 million Social Security beneficiaries will receive the increase. Higher payments for about 7.3 million people receiving Supplemental Security Income (SSI) will begin December 31, 2026.

How And When You’ll Be Notified

Beneficiaries will receive a simplified, one-page COLA notice that uses plain language and shows exact dates, dollar amounts and any deductions. Here is how you’ll get yours:

• Online: People with a personal my Social Security account can view their notice starting in late November, up to three weeks before a paper notice arrives. They can also sign up for text or email alerts.
• New accounts: Anyone without an account must create one and enroll in paperless notices by November 18 to see their notice online. Start at ssa.gov/myaccount.
• By mail: Beneficiaries who haven’t enrolled in paperless notices will receive their notice in December.

Medicare enrollees can see their 2027 premium amount in the my Social Security Message Center starting in late November. More information is available at Medicare.gov.

The Many Benefits Of SSDI

SSDI benefits are based on your earnings record and your contributions to Social Security through payroll taxes. In addition to monthly payments, SSDI recipients may be eligible for:

• Dependent benefits for children under 18.
• Medicare eligibility after 24 months of receiving SSDI.
• Return-to-work incentives that let beneficiaries test employment without immediately losing benefits.
• Extended COBRA coverage and retirement benefit protections.

"The annual COLA can offer some help in keeping up with everyday expenses," Perrigo said. "For individuals who are receiving SSDI and considering returning to work, the Ticket To Work Program provides valuable support to explore employment options while maintaining access to their benefits."

He added that individuals considering work can get assistance at no cost from Allsup Employment Services, which is an SSA-authorized Employment Network and a subsidiary of Allsup.

The new COLA, combined with Disability Financial Solutions® from Allsup, can help people receiving SSDI manage their money and plan for 2027 with greater confidence. In addition, Allsup Veterans Appeals® is committed to helping veterans find success with their appeals for disability claims through the U.S. Department of Veterans Affairs. Learn more at AllsupVeteransAppeals.com.

Increasing Your Chances For Approval With Allsup

If you are experiencing disability at any stage and need to apply or appeal for SSDI, expert help from Allsup can make the difference.

Allsup has 42+ years of experience helping over 425,000 people get approved for SSDI. We also have industry-leading expertise in handling VA appeals, Medicare coordination and returning to work with benefits protection.

Advantages Of Having Allsup Representation

• Expert guidance throughout the process.
• Increased likelihood of approval.
• Disability Financial Solutions® to help regain stability.
• Support during the appeals process.
• Reducing stress by focusing on your health while we handle your claim.
• Representation for VA and SSDI together, if a veteran.
• Long-term help, including Medicare coordination and returning to work.

Allsup can provide you with everything you need to make the process smoother, reduce delays and improve your chances of approval.

Get Started – With No Cost And No Obligation

Check your eligibility now, or connect with Allsup by calling (800) 678-3276 or contacting us online.