New estimates show the Social Security cost-of-living adjustment for 2027 may be 3.4% to 3.6%, based on the latest government inflation data released Wednesday:
The Social Security COLA is an annual adjustment that helps Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation:
The Social Security Administration typically announces the official COLA for the upcoming year in October:
New July CPI data points to a 3.4% COLA for 2027, according to Mary Johnson, an independent Social Security and Medicare policy analyst:
She noted that moderation in inflation has led to a decrease in her estimate:
The new estimate is still higher than the long-term average COLA of around 2.6%:
Over the past decade, the COLA has averaged 3.1%:
The Senior Citizens League estimates the 2027 COLA may be 3.6%, while AARP projects it at 3.5%:
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W):
Data shows the CPI-W rose 3.4%:
