The 2027 cost-of-living adjustment (COLA) will be 3.6% for Social Security beneficiaries and CSRS retirees. Eligible FERS retirees will receive a smaller increase of 2.6%, while most FERS retirees under age 62 will not receive a COLA.
The Social Security Administration announced the 3.6% increase on October 14, 2026. The adjustment is the largest since 2023 and will affect millions of retirees and beneficiaries.
What Is the 2027 COLA for Each Group?
| Group | 2027 COLA | Age requirement |
| Social Security beneficiaries | 3.6% | None |
| CSRS retirees | 3.6% | None |
| FERS retirees age 62 or older | 2.6% | Generally, age 62 by December 1, 2026 |
| FERS special provision retirees, including eligible law enforcement officers, firefighters and air traffic controllers | 2.6% | No general age-62 requirement |
| Eligible FERS survivor annuitants and disability retirees | 2.6% | Special rules apply |
| Most other FERS retirees under age 62 | No COLA | Generally wait until age 62 |
Why Is the FERS COLA Smaller?
The FERS COLA formula limits annual increases when inflation exceeds certain thresholds. When the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rises by 2% or less, FERS retirees generally receive the full increase. If inflation is above 2% but no more than 3%, the COLA is 2%. When inflation exceeds 3%, the adjustment is reduced by one percentage point.
With the CPI-W increase at 3.6%, the 2027 FERS COLA is 2.6%. This reduction is often called the “diet COLA.”
At What Age Do FERS Retirees Start Getting COLAs?
Most FERS retirees become eligible for COLAs at age 62. To qualify for the 2027 adjustment under the standard age rule, a retiree generally must turn 62 on or before December 1, 2026. Someone who turns 62 after that date generally must wait for a later COLA, subject to the applicable rules.
There are exceptions for certain special provision retirees, survivor annuitants and disability retirees.
Retirees who leave federal service before age 62 generally do not receive COLAs during the years they are ineligible. Those missed increases are not added to the annuity later. For example, a retiree who leaves at age 57 will generally receive no COLA until becoming eligible at 62.
The FERS Supplement also does not receive COLAs. It is a temporary benefit for eligible retirees, generally payable until age 62, and remains separate from the regular FERS annuity.
What Does a 2.6% COLA Mean in Dollars?
For someone receiving a $2,000 monthly FERS annuity, a 2.6% increase would add $52 per month, or $624 per year, before any applicable deductions.
At the full 3.6% rate, the same annuity would increase by $72 per month, or $864 per year. The difference between the two adjustments is $20 per month.
FERS retirees who also receive Social Security will generally receive the full 3.6% increase on their Social Security benefit, even if their FERS annuity receives only 2.6%.
The Social Security Administration estimates that the average retired worker’s monthly benefit will increase by $75, from $2,095 to $2,170.
When Does the Increase Take Effect?
The 2027 federal annuity COLA is effective December 1, 2026. The increase is generally reflected in the annuity payment issued on the first business day of January 2027, which is January 4.
The Social Security COLA applies to benefits payable beginning in January 2027. People with a my Social Security account can check their COLA notice online, with notices expected to become available in late November. Other beneficiaries will receive notices by mail.
What If You Retired in 2026?
Federal annuity COLAs are prorated during the first year of retirement. The amount generally depends on how many months the annuitant was entitled to receive an annuity before the December 1 effective date.
As a result, someone who retired during 2026 may receive less than the full applicable COLA.
What Else Is Changing?
The 2027 Social Security earnings limit for people younger than full retirement age throughout the year increases to $25,560, up from $24,480 in 2026. Under the earnings test, Social Security generally withholds $1 in benefits for every $2 earned above the limit.
The FERS Supplement is also subject to an earnings test for many recipients. Employment earnings can reduce the supplement, although the FERS annuity itself is not treated as earnings for this test.
Medicare enrollees can check their my Social Security account for information about their 2027 premiums as notices become available.
For more information on federal retirement benefits, visit Federal Retirement Consultants.
Frequently Asked Questions
What is the 2027 COLA for federal retirees? CSRS retirees and Social Security beneficiaries receive a 3.6% adjustment. Eligible FERS retirees receive 2.6% under the FERS COLA formula.
At what age do FERS retirees get a COLA? Generally, at age 62. Exceptions apply to certain special provision retirees, survivor annuitants, and disability retirees. COLAs missed before age 62 are generally not added to the annuity later.
Does the FERS Supplement get a COLA? No. The FERS Supplement does not receive COLAs. It is a temporary benefit for eligible retirees, generally ending at age 62.
When will the 2027 COLA appear in my federal annuity payment? The adjustment takes effect December 1, 2026, and is generally reflected in the payment issued January 4, 2027.
