How much will Social Security benefits go up next year? Date for 2027 COLA announcement

Social Security recipients are entering a critical period as the federal government prepares to determine the 2027 Cost of Living Adjustment. This annual increase is based on inflation data from the third quarter of the year. The government uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, to calculate these adjustments. This index tracks price shifts for everyday goods and services, ranging from household groceries to airline travel.

While monthly forecasts circulate throughout the year, the figures recorded in July, August, and September remain the final determinants for the adjustment percentage. Projections from The Senior Citizens League currently estimate a 3.8% increase for 2027. If realized, this would represent the largest annual jump since the 8.7% increase seen in 2022. Recent years have seen adjustments of 3.2% in 2023, 2.5% in 2024, and 2.8% in 2025.

To put these figures in perspective, a 3.8% increase would lift the average monthly benefit payment by approximately $73.62. This change would shift the average payment from $1,937.53 to $2,011.15. These figures are hypothetical at this stage, as the official determination depends on the final data collected through the end of September.

The official announcement regarding the 2027 adjustment is scheduled for October 14. The Labor Department will release the September inflation data early that morning. Following this release, the Social Security Administration will finalize and publish the actual increase. Recipients will see these changes reflected in their first payments of the new year, or in the December 31 payment for those receiving Supplemental Security Income.