Social Security beneficiaries may see a cost-of-living adjustment (COLA) as high as 3.6% for 2027. This annual adjustment serves to help monthly payments keep pace with rising costs for consumers. While current projections range from 3.2% to 3.6%, the final number remains subject to change.
The calculation relies on third-quarter inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration compares the average CPI-W readings from July, August, and September against the same three-month period from the previous year. Because the full third-quarter data is not yet complete, these forecasts represent estimates rather than final figures.
Different organizations provide varying outlooks based on recent inflation reports. The Committee for a Responsible Federal Budget projects the lower end of the range at 3.2%, citing steady CPI-W trends in July. AARP forecasts a 3.5% increase, noting that shifts in food and energy costs through September will impact the final result. The Senior Citizens League offers the highest estimate at 3.6%, which would add approximately $69.75 to the average monthly benefit.
The Social Security Administration will announce the official 2027 COLA on October 14. This date follows the release of September inflation data from the Bureau of Labor Statistics. Beneficiaries will see the resulting adjustment take effect starting with payments issued in January 2027.