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Millions Await 2027 Social Security COLA Increase
12 Oct
Summary
- The 2027 Social Security COLA is projected between 3.5% and 3.6%.
- Inflation data from the Bureau of Labor Statistics informs the COLA.
- The adjustment will impact 75.9 million beneficiaries starting January.
The Social Security Administration is expected to announce the 2027 cost-of-living adjustment (COLA) this Wednesday. Current estimates from advocacy groups suggest an increase ranging from 3.5% to 3.6%, a significant figure for millions of Americans as inflation continues to affect daily expenses.
This annual adjustment to Social Security payments, including those for Disability Insurance and Supplemental Security Income, is calculated based on inflation data. The Senior Citizens League predicts a 3.5% rise, while the American Association of Retired Persons estimates 3.6%, based on recent consumer price index trends excluding the September data.
Beneficiaries received a 2.8% COLA in 2026, leading to an average monthly increase of about $56. The forthcoming adjustment, which will be reflected in January's checks, is particularly vital as a 2026 survey indicated 89% of older Americans felt the previous year's COLA was insufficient.
As of August, the Social Security system provided benefits to 75.9 million individuals. The final COLA calculation depends on the average percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers from July, August, and September compared to the prior year.
