US Social Security Benefits Rise After 2025 Reforms and 2027 COLA Forecast

The 2025 Social Security Fairness Act, signed by President Joe Biden, repealed the windfall elimination provision and government pension offset that had limited benefits for widows and divorced spouses of state and local public employees such as police, firefighters and teachers. The change is expected to affect about 2.5 million recipients, with some seeing an extra $1,000 or more per month; the National Education Association estimates an average $360 boost for its members, while the International Association of Fire Fighters projects increases up to $587.

Separately, policy analyst Mary Johnson forecasts a 4.7 percent cost‑of‑living adjustment (COLA) for Social Security benefits in 2027, driven by persistently high inflation and a recent surge in gasoline prices linked to the Iran war. This estimate exceeds the Senior Citizens League’s projection of a 3.8 percent rise. The Social Security Administration will announce the official COLA in October based on the third‑quarter CPI‑W data.