08/24/2026
Early estimates for the 2027 Social Security cost-of-living adjustment have moved lower as inflation moderates.
New projections suggest the 2027 COLA may fall between 3.4% and 3.6%.
The official adjustment has not been announced yet. The final number will depend on inflation data for July, August, and September.
Social Security COLAs are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.
July data showed CPI-W rose 3.4% over the past 12 months. The broader consumer price index also rose 3.4% year over year.
One estimate from AARP suggests a 3.5% COLA would raise the average retired worker’s benefit by about $73 per month.
For retirees and near-retirees, the COLA is an important reminder that inflation can affect income, purchasing power, household expenses, and long-term financial decisions.
Source:
New estimates show just how much Social Security benefits may increase in 2027, based on new government inflation data.
