2027 Social Security COLA: Millions of Americans receiving Social Security are waiting for the 2027 Cost-of-Living Adjustment (COLA). The increase is designed to help benefits keep up with inflation, but the final number has not been announced yet.
The latest estimates have moved slightly higher after the August inflation report. AARP is currently projecting a 3.6% COLA for 2027, while the Senior Citizens League (TSCL) is expecting a 3.5% increase. The official figure will depend on September inflation data and will be announced by the Social Security Administration (SSA) in October.
The 2026 COLA was 2.8%. Any 2027 increase will apply to Social Security benefits and Supplemental Security Income (SSI) payments. The new adjustment will take effect with benefits payable from January 2027.
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How The 2027 Social Security COLA Is Calculated
The SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, to calculate the annual COLA. The agency looks at the average CPI-W for July, August and September. It compares that average with the third-quarter average from the year used for the previous COLA calculation. The percentage increase is then rounded to the nearest 0.1%.
This means September’s inflation data is still important. The Bureau of Labor Statistics is scheduled to release the September CPI report on October 14, 2026. The SSA is also expected to announce the official 2027 COLA on that date.
Current inflation data shows why beneficiaries are watching the number closely. Consumer prices rose 3.4% over the 12 months ending in August 2026. Food prices increased 2.7%, shelter rose 3.0% and energy prices jumped 16.3%. Medical care services increased 2.5%. These figures show the wider inflation picture, but they don’t directly determine the Social Security COLA because the SSA uses the CPI-W formula.
How Much Could Social Security Payments Increase?
The exact increase will depend on the final COLA and each person’s current benefit. The SSA says the estimated average monthly Social Security retirement benefit for a retired worker was $2,071 in January 2026. A 3.6% increase would add about $75 to that amount, taking the average monthly benefit to roughly $2,146.
A 3.5% increase would produce a smaller rise. For example, a person receiving $2,000 a month would see an increase of about $70 if the final COLA were 3.5%.
The same COLA percentage applies to different types of Social Security benefits. This includes retirement benefits, disability benefits and survivor benefits. SSI payments are also adjusted when the annual COLA takes effect. The actual amount received will still depend on the beneficiary’s individual benefit and any deductions.
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Medicare Costs Could Reduce the Increase
A higher Social Security payment doesn’t necessarily mean the same amount will be left over each month. Many beneficiaries have their Medicare Part B premiums deducted directly from their Social Security payments. The standard Part B premium is $202.90 per month in 2026, up from $185 in 2025. The 2027 Part B premium has not yet been finalized.
This means a beneficiary could see a higher Social Security payment because of the COLA while also facing a higher Medicare deduction. Other household costs can also rise during the year.
