How Much Would Your Social Security Benefits Increase With the 2027 COLA?

How much could the COLA increase in 2027?

Social Security beneficiaries could receive a larger increase than this year. Following the release of August inflation data, estimates range between 3.4% and 3.6%.

However, September inflation data is still pending. For this reason, the official 2027 COLA figure has not yet been finalized.

For comparison, the COLA applied in 2026 was 2.8%. The new adjustment seeks to offset the recent impact of inflation on monthly payments.

What inflation data supports these estimates?

The Bureau of Labor Statistics (BLS) reported that prices rose 3.4% over the last 12 months through August. That figure corresponds to the general consumer price index.

In the case of the CPI-W, the indicator used to calculate the COLA , the annual increase was 3.5%. By law, the final adjustment considers data from July, August, and September.

What are different organizations projecting?

The Committee for a Responsible Federal Budget (CRFB) calculates a 2027 COLA of 3.4%. Its estimate is based on data available through August.

In contrast, the American Association of Retired Persons (AARP) projects an increase of 3.6%. Its calculation also incorporates specific forecasts for the month of September.

Meanwhile, The Senior Citizens League (TSCL) estimates a COLA of 3.5%. That figure is slightly lower than their previous forecast, which was 3.6%.

Under TSCL’s calculation, the average monthly benefit would increase $67.90. Thus, the average payment would rise from $1,940.08 to $2,007.98 per month.

However, that increase would not be the same for all beneficiaries. The additional amount depends on the benefit each person currently receives.

Why is it helpful to know these estimates now?

Rich Johnson, Vice President of Financial Security at AARP’s Public Policy Institute, explained the usefulness of these figures. He said they help older adults prepare in advance.

«Family budgets have come under increasing pressure due to rising prices,» Johnson said. He spoke to FOX Business.

«The sooner we can provide them with reliable information… the sooner they can start planning,» Johnson added to that outlet. His organization uses projections from the Federal Reserve Bank of Cleveland.

Additionally, Johnson explained that there is already less uncertainty about the final outcome. «We are confident that the COLA will be around 3.5%,» he stated to FOX Business.

When will the official 2027 COLA figure be announced?

The definitive figure will be announced on October 14. That day, the BLS will release inflation data for September.

In the meantime, beneficiaries should take current figures only as estimates. The exact amount of the increase will be confirmed at the official announcement.

Comparison of 2027 COLA estimates

Organization	COLA Estimate
CRFB	3.4%
TSCL	3.5%
AARP	3.6%
COLA applied in 2026	2.8%