The projected cost-of-living adjustment (COLA) for 2027 could lead to record Social Security payouts for married seniors, particularly those receiving spousal benefits. The Senior Citizens League estimates a 3.6% COLA for 2027, an increase from the current year's 2.8%.
This adjustment is expected to raise the average retirement benefit to $2,161 per month, consequently boosting the average spousal benefit to approximately $1,080. This figure represents a notable increase from the current average spousal benefit of $986 per month. Roughly 2 million individuals currently receive spousal benefits.
The exact increase in benefits will vary based on an individual's current benefit amount, as COLA is calculated as a percentage of that amount. For instance, a $600 monthly benefit could see an increase of about $22, while a $1,500 monthly benefit might rise by approximately $54.
The official 2027 COLA will be announced by the Social Security Administration on October 14, following the release of final inflation data for August and September. While the 3.6% estimate is subject to fluctuation, experts suggest it would provide a welcome financial boost to seniors facing persistent high prices for essentials like gas and groceries.
Recipients will receive personalized benefit notices in December detailing their January 2027 payment amounts. Those with a my Social Security account may access this information online before the paper copy arrives. These notices will reflect any applicable Medicare deductions.
Spousal benefits are available to individuals who do not meet the work credit requirements for independent Social Security eligibility but can qualify through a current or former spouse. Some recipients may also be eligible for their own Social Security benefits but opt for the higher spousal benefit. Divorced individuals can qualify for spousal benefits if the marriage lasted at least ten years.
The amount of a spousal benefit is determined by the primary earner's work record. The maximum a spouse can receive is 50% of the primary earner's primary insurance amount, which is based on their earnings at full retirement age. Claiming benefits before full retirement age results in a permanent reduction in monthly payments.
Separate from the annual COLA, legislative efforts such as the reintroduced Social Security 2100 Act aim to implement broader changes. This proposed bill includes provisions for a higher minimum benefit, a revised inflation measure (CPI for the Elderly), and an increase in the Social Security payroll tax cap to cover income over $400,000, which could extend the solvency of the trust fund by an estimated 32 years. The Social Security trust fund is currently projected to be depleted by late 2032.