Social Security COLA 2027 estimate predicts a benefits increase: What to know
The Brief
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AARP estimates that Social Security benefits could receive a cost-of-living increase in 2027.
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The final adjustment will depend on inflation data from July through September.
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The official increase will be announced after the required data is released.
The cost-of-living (COLA) for 2027 could increase to 3.6%, AARP predicted using current inflation data.
COLA could be 3.6% in 2027
Dig deeper
The Bureau of Labor Statistics (BLS) on Friday released its inflation gauge to calculate the Social Security COLA.
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In August, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) — the index used to calculate Social Security COLAs — rose 3.5% year-over-year, according to the BLS.
How much more could Social Security beneficiaries receive?
By the numbers
In July, the average Social Security beneficiary received about $2,086.
If the COLA goes to 3.6% in 2027, that estimated amount could go up by $75, AARP predicted.
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Monthly benefit for a surviving spouse: Increase of about $70
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Social Security Disability Insurance recipient: Increase of about $59
What’s next
AARP’s estimated 2027 Social Security COLA of around 3.5% — calculated using CPI-W data through August 2026 and Federal Reserve projections — remains a preliminary prediction that cannot be finalized until the BLS releases September’s official inflation data.
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If AARP’s predictions turn out to be correct, it would be the largest increase since 2023, according to a New York Times report.
What’s causing the price increases?
Big picture view
The increase in consumer prices is largely due to tariffs and the spike in energy costs stemming from the war in Iran, AARP said.
What they’re saying
“Older Americans are feeling inflation most acutely in groceries, energy, housing and health care — areas where those on fixed incomes have little room to adjust to and absorb costs,” Indivar Dutta-Gupta, a distinguished visiting fellow with the National Academy of Social Insurance, told AARP.
The Source
Information for this article was taken from an AARP news release published on Sept. 11, 2026, and a New York Times report. This story was reported from San Jose.