Social Security recipients will have to wait until October to know how much more they will receive in the new year.
But the latest predictions give recipients an indication of the likely change.
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Based on current forecasts from nonpartisan advocacy group The Senior Citizens League, Social Security’s Cost of Living Adjustment, or COLA, for 2027 will be 3.8%. That amount would be the largest increase since 2022, when COLA went up 8.7% amid post-COVID inflation. Since then, COLA has been 3.2%, 2.5% and 2.8% for 2023, 2024 and 2025, respectively.
As of June, the average Social Security benefit was $2,084 a month. A 3.8% increase would raise the average retirement benefit by $79, bringing the total to $2,163. For those receiving the maximum Social Security benefit – $5,181 per month – the COLA change would be an additional $197, bringing the total to $5,378.
Next year’s Cost of Living Adjustment, or COLA, is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, in the third quarter of the year – July, August and September. That means while forecasts for Social Security increases are issued monthly, the numbers from these three months are the ones that really matter.
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Next year’s Social Security increase will be announced after the Labor Department releases its September inflation data. That’s set to happen on Oct. 14 at 8:30 a.m. ET. After that, the Social Security Administration will announce the 2027 increase payable on the first check in the new year (or the Dec. 31 payment for SSI recipients).
