Here's how much Social Security's 2027 COLA could rise under new estimates
Summary
New estimates suggest that Social Security benefits will increase by about 3.5% to 3.6% in 2027, which is a smaller rise than previously expected. This adjustment is meant to help benefits keep up with inflation, but it is based on past price changes and the exact amount will be confirmed in October.Key Facts
- The 2027 Social Security cost-of-living adjustment (COLA) is now projected between 3.5% and 3.6%.
- Previous forecasts predicted a higher increase of around 3.8%.
- The projections are based on July Consumer Price Index (CPI) data showing inflation easing to 3.4%.
- An average retired worker currently receives $2,071 per month in Social Security benefits.
- A 3.6% increase would raise this average benefit by about $75 monthly, to roughly $2,146 in 2027.
- The official COLA for 2027 will be announced on October 14, after the release of August and September inflation data.
- COLA adjustments are designed to help benefits keep pace with inflation but may lag behind actual rising costs.
- In 2026, the COLA was 2.8%, but inflation has been higher than that since March, causing concerns among seniors.
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