SSDI Beneficiaries To Receive 3.6% COLA Increase In 2027, Allsup Reports

Belleville, Illinois — Oct. 14, 2026 — Allsup, a leading provider of Social Security Disability Insurance (SSDI) representation, return to work, disability financial solutions and veterans disability appeals services, announced today that SSDI beneficiaries will receive a 3.6% increase in their monthly benefits in 2027, according to the Social Security Administration’s (SSA) newly announced cost-of-living adjustment (COLA). This adjustment, which takes effect in January 2027, is larger than the 2.8% increase beneficiaries received in 2026 and aims to help beneficiaries manage rising living expenses.

“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.”

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.

SSDI benefits are determined based on recipients’ prior earnings from work and their contributions to the Social Security system through payroll taxes. In addition to monthly payments, SSDI recipients may be eligible for a range of benefits, including:

• Dependent benefits for children under 18.
• Medicare eligibility after 24 months of receiving cash SSDI benefits.
• Return-to-work incentives allowing beneficiaries to test employment while protecting their access to disability 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. Learn more at AllsupES.com.

With the new COLA and access to Disability Financial Solutions® from Allsup, individuals receiving SSDI benefits can better manage their finances and plan for 2027 with more certainty. Starting December 2026, SSA will begin sending notices informing beneficiaries of their new 2027 benefit amounts.

Allsup remains committed to guiding individuals experiencing disabilities through every stage of the SSDI process from application to appeal. In addition, Allsup Veterans Appeal® 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 or call (888) 372-1190.

Through the Refer A Friend program at Allsup, individuals can get someone the help they need with an SSDI claim or veterans disability appeal and receive $100 as a thank you once the person’s claim or appeal is filed.

For more than four decades, Allsup has helped more than 425,000 people successfully receive the SSDI benefits they earned. For more information about applying for SSDI benefits or determining eligibility, visit https://allsup.help/cola-2027 or call (800) 678-3276.

ABOUT ALLSUP

Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, disability financial solutions, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at Allsup.com or download a free PDF of Applying for Social Security Disability Insurance: Getting It Right The First Time.