McDermott Law, LLC Highlights 3.6% Social Security COLA for 2027
DENVER, CO - October 16, 2026 - PRESSADVANTAGE - Denver, CO, October 16, 2026 - This report, distributed by McDermott
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DENVER, CO – October 16, 2026 – PRESSADVANTAGE –
Denver, CO, October 16, 2026 – This report, distributed by McDermott Law, examines the Social Security Administration’s announcement of a 3.6 percent cost-of-living adjustment for 2027 and the updated disability thresholds that accompany it, which can intersect with private disability insurance claims.
The agency announced the increase on October 14, 2026. Nearly 72 million Social Security beneficiaries will see the adjustment beginning in January 2027, and increased payments to about 7.3 million people receiving Supplemental Security Income will begin on December 31, 2026, according to the agency. On average, retirement benefits will rise by $75 per month. The annual adjustment is tied to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of 2025 through the third quarter of 2026.
The agency’s 2027 fact sheet lists the disability thresholds for the coming year. The substantial gainful activity amount rises from $1,690 to $1,770 per month for non-blind individuals and from $2,830 to $2,950 for blind individuals. The trial work period amount rises from $1,210 to $1,270 per month. The SSI federal payment standard rises from $994 to $1,029 for an individual and from $1,491 to $1,544 for a couple, while the SSI resource limits remain $2,000 and $3,000.
After the adjustment, the agency estimates that the average monthly benefit for all disabled workers will be $1,701, up from $1,642. For a disabled worker with a spouse and one or more children, the estimated average is $3,077, up from $2,970.
People with a my Social Security account can view their COLA notice online beginning in late November, the agency said, and people not enrolled in paperless notices will receive one by mail in December.
The annual adjustment applies to Social Security and SSI benefits under the Social Security Act. Benefit amounts under private disability insurance policies are set by the terms of each policy. Long-term disability benefits may be reduced when an insured also receives Social Security disability benefits, as designated by the policy language, according to McDermott Law. Nolo, a legal publisher, reports that long-term disability policies commonly require claimants to apply for Social Security disability benefits and allow the insurer to reduce payments by the amount received, while the person’s Social Security benefits themselves remain intact.
Whether and how a cost-of-living increase changes an offset under a particular policy depends on the policy’s wording.
McDermott Law, LLC, based in Denver, handles long-term disability, individual disability, ERISA, life insurance, accidental death and dismemberment, long-term care insurance, PERA disability, and insurance bad faith claims, according to the firm. The firm states that it does not handle Social Security disability claims.
Under Colorado law, a first-party claimant whose insurance benefits are unreasonably delayed or denied may bring an action to recover reasonable attorney fees and court costs and two times the covered benefit, according to a 2026 Colorado Court of Appeals opinion. Colorado law also prohibits discretionary clauses in insurance policies that offer health or disability benefits and are issued in the state, according to the Colorado Revised Statutes. Their application to a particular employer-sponsored plan can also depend on federal law.
The information in this release is based on the Social Security Administration’s October 14, 2026 announcement and 2027 fact sheet, Nolo’s published guidance, and Colorado statutes and court opinions. It is presented for general public awareness and is not legal advice.
McDermott Law, LLC represents clients in long-term disability insurance claims throughout Colorado.
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For more information about McDermott Law, LLC, contact the company here:
McDermott Law, LLC
Shawn E. McDermott
(303) 964-1800
shawn@mcdermottlaw.net
4600 S Ulster St Suite 800 Denver, CO 80237
