Millions of Americans receiving Social Security benefits will see their monthly payments rise by 3.6 percent in 2027, following the announcement of the annual cost-of-living adjustment (COLA) today. The Social Security Administration (SSA) has said average benefits will increase by around $75 per month, though this will vary based on the type of benefit claimed and how much recipients already receive. Trump, Social Security is delivering better, faster, higher-quality service for the American people." The adjustment follows a 2.8 percent increase in 2026 and is intended to help protect the purchasing power of Social Security benefits as Americans contend with rising living costs.
More than 70 million people rely on Social Security benefits, with the new COLA impacting all payments starting in 2027. The COLA is an annual adjustment designed to prevent Social Security benefits from losing purchasing power as prices rise. The adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the prices of goods and services purchased by working Americans.
The Social Security Administration (SSA) compares the average CPI-W reading for July, August and September with the corresponding three-month average from the previous year. The percentage increase determines the following year's COLA, rounded to the nearest tenth of a percentage point. Because the calculation uses third-quarter inflation figures, the adjustment is announced in October, once September's data have been published by the Bureau of Labor Statistics.
U.S. inflation accelerated to 3.7 percent in September, up from 3.4 percent in August, according to the Bureau of Labor Statistics. Consumer prices rose 0.6 percent over the month on a seasonally adjusted basis, driven largely by higher energy costs, with gasoline prices surging 9.1 percent in September, accounting for more than half of the monthly increase, while overall energy costs climbed 5.2 percent. The CPI-W rose 3.9 percent over the year and 0.7 percent in September before seasonal adjustment.
The adjustment affects all SSA-administered payment programs. These are: The 2027 COLA comes amid widespread concern among older Americans that the annual increase will do little to ease the financial pressures they face, particularly in a year when inflation has been running hot. The year-over-year inflation rate was 3.7 percent through September 2026, still well above the 2 percent Federal Reserve target.
A new nationwide AARP survey, published prior to the COLA announcement, found that 76 percent of adults aged 50 and older believed a projected 3.5 percent COLA would be insufficient to keep up with rising prices. Among current Social Security recipients, that figure increased to 80 percent. Meanwhile, 71 percent of respondents said an increase of between 5 and 8 percent would be needed to help beneficiaries afford everyday expenses.
Extract — continue reading at the source.
