Social Security COLA 2027 may rise to 3.8%: How much more could you receive?
Rising inflation data hints at a higher Social Security cost-of-living adjustment (COLA) of 3.8% for 2027. This could increase average monthly benefits to $2,103, but advocates warn that inflation continues to strain seniors’ ability to meet basic living costs.
Following the latest inflation data, expectations are rising for a slightly higher increase in the Social Security cost-of-living adjustment (COLA) in 2027. However, several advocacy groups suggest that beneficiaries shouldn’t expect a huge increase.
Nonpartisan advocacy group The Senior Citizens League says that Social Security recipients would receive a 3.8% boost if the COLA were based on today's data. This is 1 percentage point higher than last year’s increase of 2.8%. So, the average benefit for retirees would increase by $77 a month.
The average retiree currently receives $2,026 per month from Social Security, and after the addition of COLA, it would be $2,103.
How is COLA calculated?
The annual COLA is based on how much the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rises during July, August and September. The average inflation reading for these three months is compared with the same period a year earlier. The percentage increase becomes the COLA for the following year. Since the inflation data for August and September is still to come, the final COLA could change before it is officially announced in October.
But with ongoing inflation, the COLA won’t do much to help seniors with living expenses.
“We’re seeing inflation on the rise when more than half of seniors already can’t afford basic living standards. We’re talking about food, a roof over their head, and transportation. Many seniors already have to skip doctor’s appointments due to costs, which costs all of us more in the long run when we swap preventative care for emergency care,” TSCL Executive Director Shannon Benton told AL.com
The upgraded COLA estimates come as Americans continue to grapple with rising living costs. Prices for essentials such as home heating oil, gasoline, tomatoes, coffee and fresh vegetables have climbed sharply over the past year
Have some beneficiaries seen income increase?
Owing to a major rule change last year, some Social Security beneficiaries are seeing their incomes increase. In January 2025, the Social Security Fairness Act repealed two provisions - Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) - which had reduced or eliminated benefits for over 2.9 million public servants.
Now, some beneficiaries have seen an average increase of $360 per month in their Social Security payouts. Others saw a monthly change of as much as $1,000, the Social Security Administration said.
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