Overview
- Analysts updated their forecasts on Friday to place the likely 2027 cost-of-living adjustment in the 3.5%–3.6% range after new August inflation data.
- The Social Security Administration will compute the official COLA from the July–September CPI‑W and is scheduled to announce the 2027 rate on Oct. 14.
- A 3.5%–3.6% COLA would raise the average retired worker’s benefit by about $70–$75 per month before deductions, based on the SSA’s roughly $2,071 average benefit.
- Volatile energy prices, which pushed August inflation higher, and the yet-to-be-released September CPI are the main sources of upside risk that could raise the final COLA.
- Any increase in Medicare Part B premiums will be deducted from Social Security checks and has in recent years consumed much of COLA gains, while long-term trust fund shortfalls keep policy changes on the table.