Chicago – July 31, 2026
Social Security beneficiaries may get a noticeably larger cost-of-living adjustment in 2027, with early estimates pointing to an increase of roughly 3.8% to 3.9%, or about $77 a month for the average retired worker. The projection comes as inflation has accelerated, lifting expectations for next year’s benefit increase, according to the Senior Citizens League and other analysts.
The annual COLA is meant to protect purchasing power, but it is calculated from consumer prices measured over a specific period before the adjustment takes effect. Because the formula relies on the CPI-W, critics argue it does not fully reflect the spending patterns of older Americans, particularly their higher medical expenses.
The Social Security Administration will announce the official 2027 COLA in October, after the final inflation data are released. Until then, the estimate could move higher or lower depending on price trends through the summer and early fall.
