Social Security and Supplemental Security Income (SSI) beneficiaries could see their monthly benefits rise again in 2027, as early projections indicate a higher cost-of-living adjustment (COLA). Current predictions suggest benefits may increase by about 3.9%, more than the 2.8% increase recipients received in 2026.
This anticipated increase is driven by ongoing inflation, which is impacting expenses such as housing, utilities, food, and healthcare. Since Social Security COLAs are linked to inflation data, higher consumer prices typically result in larger annual benefit increases. The Social Security Administration determines these adjustments based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
For millions relying on Social Security retirement benefits, SSDI, and SSI, even a modest increase can have a meaningful impact. An almost 4% increase could add several dollars to monthly checks, offering much-needed support amid rising living costs. Many people who receive benefits are disabled, which can be more expensive.
According to the National Disability Institute, in 2020, households with an adult with a disability needed, on average, 28% more income to maintain the same living standard as similar households without a disabled member. This translates to an extra $17,690 annually for a family at the median income level just to cover basic needs.
These additional costs are often referred to in the disability community as the “disability tax”—the extra costs required simply to live. This “tax” goes beyond medical bills, capturing the extra effort, energy, time, and money needed to keep up with daily life. Becca Lory Hector describes it as “the additional effort, energy, finances, and time it takes us to regularly match what our peers and colleagues do on a daily basis.”
This “disability tax” shows up every day. At the beginning of the COVID-19 pandemic, Tiffany Yu decided to learn to cook. Although she knew how to prepare basic meals, she often relied on takeout and microwave meals. Ever since her right arm was paralyzed in a car accident, cooking has required specialized tools—like a one-handed cutting board that costs $75.
By comparison, standard kitchen knives cost $3 to $10. Cutting boards can cost between $5 and $20. Thus, simply chopping vegetables is much more expensive for Yu.
As inflation continues to impact daily life, many disabled people find themselves squeezed between soaring costs and limited incomes. While annual COLAs provide some financial relief, advocates say that COLAs also highlight the ongoing, often unseen financial challenges faced by disabled people.
Sources:
Goodman, Nanette, et al. “The Extra Costs of Living with a Disability in the U.S. — Resetting the Policy Table.” National Disability Institute, National Disability Institute, Oct. 2020, http://www.nationaldisabilityinstitute.org/wp-content/uploads/2020/10/extra-costs-living-with-disability-brief.pdf.
Heasley, Shaun. “Social Security, SSI Benefits Likely to Rise.” Disability Scoop, Disability Scoop, 18 May 2026, http://www.disabilityscoop.com/2026/05/18/social-security-ssi-benefits-likely-to-rise/32005/.
Yu, Tiffany. “A Cutting Board Costs Me $75 – It Might Cost You $10. What to Know about the ‘Disability Tax.’” The Guardian, Guardian News and Media, 18 Nov. 2024, http://www.theguardian.com/wellness/2024/nov/18/anti-ableist-manifesto-book.