Why Social Security's 2027 COLA Is Getting Everyone's Attention

Social Security beneficiaries are expected to see a larger cost-of-living adjustment (COLA) in 2027 than they received for this year, according to new estimates that follow the release of August inflation data.

By law, the annual Social Security COLA is calculated using the Bureau of Labor Statistics’ consumer price index (CPI) inflation data for the months of July, August and September based on a variant of the dataset known as CPI-W. The COLA boosts beneficiaries’ payments to account for a rise in the cost of living, and the COLA for 2026 amounted to a 2.8% increase.

The BLS released the August CPI inflation data that showed consumer prices were up 3.4% from a year ago, while the CPI-W was up 3.5% over the last year.