Major Social Security COLA Update Expected in Under a Week
Summary
New inflation data to be released on September 11 will give a strong indication of the 2027 Social Security cost-of-living adjustment (COLA). The official COLA announcement will come on October 14, with current estimates around a 3.6% increase, which is higher than the 2.8% increase received in 2026.Key Facts
- Social Security COLA helps more than 70 million beneficiaries keep up with inflation.
- The COLA is based on inflation data from July, August, and September, specifically from a measure called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
- The August inflation numbers releasing on September 11 are the second-to-last data needed to finalize the 2027 COLA.
- Current forecasts by The Senior Citizens League estimate the 2027 COLA at about 3.6%.
- A 3.6% COLA would raise the average monthly Social Security benefit from $2,086 to about $2,161 before Medicare costs.
- Higher COLA numbers usually mean inflation is rising, so the increase may mostly cover higher costs rather than improve retirees’ financial well-being.
- Energy prices affect the COLA because they impact inflation but may stabilize with cheaper winter fuel.
- The final 2027 COLA will be announced by the Social Security Administration on October 14.
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