Will Social Security increase in 2027? When retirees will find out

For Michigan retirees patiently waiting for the Cost-of-Living Adjustment announcement for Social Security payments in 2027, the announcement won’t come until mid-October.

The Cost-of-Living Adjustment is a yearly benefit change to Social Security and Supplemental Security Income payments to keep up with inflation, so recipients are given a proportionate check to sustain their buying power of everyday items like gas, food, clothing and more. The official COLA will be announced on Wednesday, Oct. 14, and will go into effect in January 2027.

Social Security is paid through the Social Security Administration to benefit retired workers, those with disabilities or for survivors. The Supplemental Security Income program is also a part of the SSA to provide benefits for those with limited or no income or resources, those aged 65 or older and those with a qualifying disability.

While the COLA remains undetermined, the nonpartisan senior advocacy group, The Senior Citizens League releases monthly predictions.

On July 14, The Senior Citizens League, projected the COLA to be a 3.8% increase — which matches the forecast released in June. The 3.8% increase would be 1.1 percentage points higher than the increase for 2026.

Here’s more on the 2027 COLA:

When will the official 2027 COLA be announced?

The official COLA increase for Social Security payments in 2027 will be announced on Wednesday, Oct. 14, 2026.

What is the current 2027 COLA prediction?

The 2027 COLA forecast stands at 3.8% as inflation rises, according to The Senior Citizens League’s July 14 update. If that goes into effect, the average Social Security check for retired workers would increase by $73.62.

In June, TSCL had the COLA forecast also at 3.8%.

The TSCL releases a COLA prediction each month based on the Consumer Price Index, Federal Reserve interest rate and the National Unemployment rate from the U.S. Bureau of Labor Statistics.

How is the COLA calculated?

The COLA is calculated with a formula, per the Social Security Act. The adjustment is based on the Consumer Price Index for urban wage earners and clerical workers (CPI-W) calculated monthly by the U.S. Bureau Labor of Statistics — CPI-W is the average change over time in the prices paid by urban wage earners and clerical workers for a market basket of consumer goods and services, per the U.S. BLS.

What was the COLA for 2026?

At the beginning of 2026 recipients received a 2.8% COLA for Social Security and Supplemental Security Income (SSI) payments, according to the SSA’s COLA Fact Sheet and American Association of Retired Persons, increasing payments about $56 per month.

When will I get my Social Security checks in August?

— USA TODAY contributed.

Contact Sarah Moore @ smoore@lsj.com

This article originally appeared on Detroit Free Press: Will Social Security increase in 2027? When retirees will find out