Social Security Increase: Retirees Could Get $75 More Per Month in 2027
Millions of Social Security beneficiaries could see their monthly payments increase by roughly $75 in 2027 if current forecasts for the program’s annual cost-of-living adjustment (COLA) prove accurate.
Early projections from both AARP and The Senior Citizens League (TSCL) suggest next year’s COLA could be significantly larger than the 2.8 percent increase recipients received in 2026. While the official adjustment will not be announced until October, estimates currently point to a benefit increase of between 3.5 and 3.6 percent.
“Due to the Iran conflict, the continued Russia-Ukraine war, and significant climatological shifts, we are seeing price pressures across the globe, whether it’s grain, meat, or agricultural inputs such as fertilizer and compost,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
Why It Matters
Social Security is the largest source of income for many retirees, and annual COLAs are designed to help benefits keep pace with inflation. Even a small percentage increase can make a meaningful difference for seniors coping with rising costs for housing, food and health care.
Americans also face concerns about Social Security’s long-term finances, and lawmakers are debating changes to fix the program ahead of its projected trust fund shortfall.
How Social Security Benefits Will Change in 2027
If current forecasts hold, the average retired worker could see monthly benefits rise by approximately $73 to $75 beginning in January 2027.AARP estimates a 3.5 percent COLA would add about $73 per month to the average retired worker’s benefit.
Meanwhile, TSCL’s 3.6 percent projection would increase the average retired worker benefit from about $2,086 per month to about $2,161, an increase of about $75 per month or $900 annually.
The final amount individual recipients receive will depend on their current benefit level. Those receiving larger monthly payments would generally see larger dollar increases, while beneficiaries with smaller checks would receive smaller increases.
“Seniors on fixed incomes will continue to feel the pinch of higher prices, particularly as necessities such as food and energy rise,” Thompson said. “The important thing to remember is that CPI measures the rate of change in prices, not whether prices themselves have returned to previous levels.”
The COLA will take effect in January 2027 after being announced by the Social Security Administration in October.
COLA Forecast: What We Know
Forecasts from AARP and TSCL have stayed roughly the same in recent weeks.
AARP is currently projecting a 3.5 percent COLA for 2027 based on inflation data and economic forecasts. The organization says that increase would add about $73 per month to the average retired worker’s benefit.
TSCL is slightly more optimistic, predicting a 3.6 percent adjustment, which would be 0.8 percentage points larger than the 2026 COLA of 2.8 percent. If that projection proves accurate, it would be the largest annual Social Security increase since 2023.
However, Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, warned that retirees don’t experience inflation exactly like the workers represented by the CPI-W.
“Health care, housing, insurance, utilities and food can take up a much larger share of a senior’s budget,” Ryan told Newsweek.
“So I’d tell retirees not to focus only on the COLA headline. The number that matters is what is left after Medicare and the expenses they actually pay every month.”
The estimates are still preliminary because Social Security COLAs are based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during July, August and September.
The Social Security Administration is scheduled to announce the official 2027 COLA on October 14 after September inflation data become available.
Why You Can’t Laminate Your Social Security Card
The Social Security Administration advises Americans not to laminate their Social Security cards because lamination can interfere with the card’s security features and make it difficult for agencies or employers to assess authenticity.
“Do not laminate your card. Lamination prevents detection of many security features,” the SSA said in the FAQ section of its website. “However, you may cover the card with plastic or other removable material if it does not damage the card.”
The Social Security Administration generally recommends memorizing your Social Security number rather than routinely carrying the card in a wallet or purse.
What Happens Next
The next key moment for retirees will arrive in October when the Social Security Administration releases the official COLA for 2027. If inflation remains elevated through the final months of the calculation period, beneficiaries could see one of the largest annual COLAs in several years.
However, experts say higher benefit checks don’t necessarily translate into greater purchasing power if prices for necessities keep rising.
“The bigger issue is what that number actually means for retirees. A bigger COLA sounds like good news, but it usually means seniors just paid a higher price to stand still,” Ryan said. “The adjustment is responding to inflation that already happened. It isn’t really a raise in purchasing power.”
Contact Newsweek editors on this story: Kate Nalepinski and Sam Wilson.