2027 COLA set at 3.6%, but FERS retirees will receive a smaller 2.6% increase

A 3.6% cost-of-living adjustment (COLA) will apply to Social Security and many retirement benefits starting in January 2027. However, most FERS annuitants will receive a reduced 2.6% COLA under the FERS COLA formula, meaning a smaller increase than CSRS and Social Security recipients.