Social Security COLA for 2027 estimated at 3.2% to 3.6%

Millions of Social Security beneficiaries are projected to receive a cost-of-living adjustment between 3.2% and 3.6% in 2027, according to multiple analyst estimates released on August 12 and 13, 2026. The forecasts, which follow the Bureau of Labor Statistics' release of July inflation data, indicate the increase would be higher than the 2.8% adjustment for 2026 but slightly lower than some earlier projections due to a modest cooling in inflation.

The Social Security Administration uses inflation data from July, August, and September to calculate the annual adjustment, which is designed to protect the purchasing power of benefits for roughly 75 million recipients. The July report showed the annual inflation rate eased to 3.4% from 3.5% in June, prompting analysts to revise their 2027 COLA predictions downward.

The Senior Citizens League, a nonprofit advocacy group, now projects a 3.6% increase, down from its previous estimate of 3.8%. The organization calculated that this would raise the average beneficiary's monthly payment by nearly $70, from $1,937.53 to $2,007.28. The Committee for a Responsible Federal Budget offered a lower estimate of 3.2%, while AARP projected a 3.5%...