Social security's top benefit could rise to $5,362 in 2027: What to know

Social Security recipients receiving the highest level of benefits are on track for a boost in 2027, though the exact figure won’t be confirmed until next month.

The Social Security Administration will announce the official 2027 cost of living adjustment (COLA) on October 14. The annual increase is estimated using the average yearly change in the consumer price index for urban wage earners and clerical workers (CPI-W) for July, August, and September.

The Senior Citizen League (TSCL) suggests the 2027 COLA will be 3.5%. If that forecast remains, the average monthly benefit would rise by $67.90, from $1,940.08 to $2,007.98. The maximum monthly benefit, currently $5,181 for those who retire at age 70 after earning at least the taxable wage cap for 35 years, would increase to $5,632.

Nearly 1% of recipients receive that maximum, equating to $62,172 annually, and just 1.4% of retirees receive more than $50,000 per year.

Benefits are calculated based on the earning record, date of birth, and date of claim. The Social Security Administration considers the top 35 earning years adjusted for inflation. The maximum taxable earnings in 2026 are estimated to be $184,500. Taking benefits at 62 means cutting the monthly benefits by one-half per cent for each month before reaching the FRA. Waiting until 70 increases benefits by about 8% every year.

3.5% cost-of-living increase will be 0.7 percentage points above the increase of 2.8% in 2026 and a full percentage point above the 2.5% increase in 2025.

Nevertheless, many seniors find themselves financially struggling. According to TSCL’s 2026 poll, 89% of respondents considered the cost-of-living adjustment for 2026 insufficient, and 44% receive all their money from Social Security. Shannon Benton, Executive Director of TSCL, believes that the annual calculation of the COLA fails to help seniors and that more frequent updates should be implemented.