Social Security COLA 2027: 10 states where retirees will get the biggest benefit hike

The official announcement of Social Security's 2027 cost of living adjustment (COLA) is just a few weeks away. The announcement for next year's COLA will be made on October 14, 2026. Even though fresh projections put that increase at 3.7 percent, benefit differences in each state mean that some retirees will get a bigger hike than others.

Social Security benefits are ascertained on the basis of lifetime career earnings and the age at which benefits are first claimed. The annual cost of living adjustment is added to that amount.

How is COLA determined?

COLA is calculated by taking the average yearly change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for July, August, and September. This means that in states with higher average wages, retirees will enjoy higher benefit levels from the annual adjustment.

States that will see highest jump

According to a report by the Virginia-based private financial and investing advice company The Motley Fool, the 10 states with the highest median Social Security benefits are:

New Jersey: $2,256

Connecticut: $2,249

Delaware: $2,225

New Hampshire: $2,215

Maryland: $2,181

Washington: $2,144

Michigan: $2,139

Minnesota: $2,135

Massachusetts: $2,121

Utah: $2,090

Six of these states -- New Jersey ($104,294), New Hampshire ($99,782), Maryland ($102,905), Washington ($99,389), Massachusetts ($104,828), and Utah ($96,658) -- rank among the 10 states with the highest median income. Three other states -- Connecticut ($96,049), Delaware ($87,534), and Minnesota ($87,117) -- have median incomes above the national median ($81,604). All the figures are in accordance with the official data from the US Census Bureau (2024 American Community Survey, released in 2025).

What to expect for 2027?

The advocacy group The Senior Citizen League forecasts the COLA for 2027 at 3.5 percent -- the highest rate in four years. If this projection holds, the average benefit will rise by $67.90. At present, a beneficiary receives an average Social Security check of $1,940.08. With a 3.5 percent surge, that figure would jump to $2,007.98.