Social Security COLA Proposals and 2027 Adjustment Estimates

Early estimates suggest the 2027 Social Security cost‑of‑living adjustment (COLA) could be about 3.8%, a level that would rank among the highest in the past decade and the 17th‑highest since the program began using CPI‑W data in 1977. The proposal known as the Social Security 2100 Act would replace the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W) with the Consumer Price Index for the Elderly (CPI‑E) when calculating future COLAs, a change supporters say would better reflect retirees’ spending on health care, housing and long‑term care and could produce modestly larger annual benefit increases. The bill also includes other measures such as a modest across‑the‑board benefit boost, enhanced minimum benefits for low‑income workers and adjustments to payroll taxes for higher earners. While the legislation has not become law, it has drawn renewed attention from senior‑advocacy groups. Meanwhile, the 2026 COLA raised average Social Security checks by roughly $56 per month, but higher Medicare Part B premiums and rising costs for housing, utilities and health care continue to strain fixed‑income seniors, prompting financial‑saving tips and calls for greater use of assistance programs.