Social Security 2027 COLA estimates rise to 3.5%–3.6%

Updated projections for the 2027 Social Security cost-of-living adjustment (COLA) suggest an increase between 3.5% and 3.6%, which would mark the highest adjustment in three years.

Estimates from various organizations include a 3.5% projection from the Senior Citizens League and policy analyst Mary Johnson, while AARP forecasts a 3.6% adjustment. If the 3.6% figure is realized, the average retired worker could see a monthly benefit increase of approximately $75.

The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). While these increases are vital for maintaining the purchasing power of retirees, some analysts note that the CPI-W may not fully reflect the spending patterns of seniors, who often face higher healthcare costs compared to the general workforce.