What Social Security Recipients Should Know About the 2027 Cost-of-Living Adjustment
Millions of Social Security and Supplemental Security Income (SSI) recipients are waiting to learn how much their benefits could increase in 2027.
The Social Security Administration (SSA) is expected to announce the 2027 cost-of-living adjustment (COLA) on October 14, 2026, following the release of September inflation data from the Bureau of Labor Statistics.
Until the official number is announced, beneficiaries will have to rely on estimates. Current projections suggest the 2027 COLA could be around 3.5% to 3.6%, although the final percentage will depend on the latest inflation data.
Here’s what beneficiaries should know.
How Is the Social Security COLA Determined?
The annual Social Security COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The Social Security Administration uses the average CPI-W for July, August and September and compares it with the average for those same three months of the previous year.
The resulting percentage increase is used to determine the annual COLA.
That makes September’s inflation data particularly important because it completes the three-month period used in the calculation.
What Could the 2027 COLA Be?
Current estimates put the 2027 Social Security COLA at approximately 3.5% to 3.6%.
The Senior Citizens League has been adjusting its projection throughout the year as inflation data has changed. Its estimates have ranged from approximately 3.9% earlier in the year to around 3.5% in more recent projections.
AARP has also adjusted its estimate and is currently projecting a COLA of approximately 3.5%.
For comparison, the 2026 COLA was 2.8%, while the 2025 COLA was 2.5%.
It is important to remember that these are estimates—not the official 2027 COLA. The final percentage could be higher or lower depending on the September CPI-W numbers.
How Much Could Your Benefits Increase?
The impact of a COLA depends on the amount of your current benefit.