The 2027 COLA is 3.6% for Social Security and CSRS and 2.6% for FERS retirees, who generally must be 62 by December 1 to receive it.
Social Security announced the 3.6% increase on October 14, the largest since 2023. Social Security beneficiaries and CSRS retirees get the full 3.6%. FERS retirees who qualify get 2.6%, and most FERS retirees under 62 get no COLA at all.
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%
62 by December 1
FERS special provision retirees (law enforcement, firefighters, air traffic controllers)
2.6%
None
FERS survivor annuitants and disability retirees (after the first year)
2.6%
None
Other FERS retirees under 62
None
Wait until 62
Why Is the FERS COLA Smaller?
By law, FERS retirees get the full increase in the CPI-W only when inflation is 2% or less. When it is between 2% and 3%, they get 2%. When it is above 3%, they get the increase minus 1 percentage point. With the CPI-W up 3.6%, the FERS COLA is 2.6%. It is often called the “diet COLA.”
At What Age Do FERS Retirees Start Getting COLAs?
Generally at 62. OPM’s rule is that FERS COLAs do not apply to annuitants who are under age 62 as of December 1. To receive the 2027 COLA, you must reach 62 on or before December 1, 2026. If you turn 62 after that date, your first COLA is the one effective December 1, 2027. Your first COLA at 62 is the full amount, not prorated.
Two more rules matter for anyone retiring before 62. COLAs you miss before 62 are not made up later, so a retiree who leaves at 57 gets a flat annuity until the first COLA at 62. And the FERS Supplement never receives a COLA.
What Does 2.6% Mean in Dollars?
On a $2,000 monthly annuity, 2.6% adds $52 a month, or $624 a year. The full 3.6% would add $72 a month, or $864 a year, a difference of $20 a month.
FERS retirees who also draw Social Security get the full 3.6% on that benefit. SSA says the average retired worker’s benefit rises $75 a month, from $2,095 to $2,170.
When Does the Increase Take Effect?
Federal annuity COLAs take effect December 1, 2026 and first appear in the payment on the first business day of January, which is Monday, January 4, 2027. Social Security’s increase begins with January 2027 benefits. People with a my Social Security account can see their COLA notice online starting in late November. Everyone else receives a paper notice in December.
What If You Retired in 2026?
Federal annuity COLAs are prorated in your first year. You receive one-twelfth of the increase for each month you were paid an annuity before December 1.
What Else Is Changing?
The Social Security earnings limit for beneficiaries under full retirement age rises to $25,560 from $24,480, with $1 withheld for every $2 above it. The FERS Supplement is subject to the same test. SSA says Medicare enrollees will see their 2027 premium in their my Social Security message center starting in late November.
