Retirees Could Get Their Biggest Social Security Raise in Three Years

New estimates put the 2027 Social Security cost-of-living adjustment at 3.5% to 3.6%, which would be the largest in three years. The Senior Citizens League says 3.5% would add about $67.90 to the average monthly benefit. The official figure follows September inflation data due on 14 October.

Social Security Board staff in Baltimore handle applications for account numbers in bundles of 500 during the programme's early years. Photo: Harris & Ewing, via Wikimedia Commons (public domain)

By the UISC BD Editorial Desk · United Information Service Center · Published 13 September 2026 · 4-minute read

This article is general information, not financial advice.

The Latest Estimates

The Senior Citizens League (TSCL) estimates a 3.5 percent COLA for 2027.
AARP's analysis of current inflation data points to 3.6 percent.
An increase of that size would be the largest since 2023.
TSCL says a 3.5 percent rise would add about $67.90 a month to the average benefit check.

How the COLA Is Calculated

The Social Security Administration sets the annual adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing the average for July to September with the same months a year earlier. That is why the final number cannot be known until September's inflation data is published.

Key Dates

14 October 2026: September CPI-W data is scheduled for release — the final input.
Shortly after: the Social Security Administration announces the official 2027 COLA.
January 2027: the increase takes effect in benefit payments.

Why It Is Higher This Year

The COLA tracks inflation. Estimates for 2027 are higher than recent years because consumer prices have risen faster in 2026. A bigger adjustment helps benefits keep pace — it is compensation for higher costs, not an increase in real spending power.

What It Means for Your Budget

Plan with a range, not a single number. The estimate can still move when the final data arrives.

Watch for Medicare changes. Many beneficiaries have Medicare Part B premiums deducted from their checks, and premium changes announced each autumn can reduce the net increase.

Check tax effects. A higher benefit can affect how much of your Social Security income is taxable, depending on your other income.

Review savings. If your emergency fund sits in a low-rate account, compare today's high-yield savings rates.

Other household costs are moving too — see proposed 2027 health insurance premiums and car insurance costs in 2026.

Sources

"Social Security COLA for 2027 may be 3.5% to 3.6%, new estimates show — the highest in 3 years," CNBC — cnbc.com
"Social Security COLA preview: will 2027 benefits go up?," AARP — aarp.org
"COLA Watch," The Senior Citizens League — seniorsleague.org
"Cost-of-living adjustment (COLA) information," Social Security Administration — ssa.gov

cola 2027 estimate (1)

Social Security COLA 2027 Estimate: 3.5% to 3.6%, the Biggest Rise Since 2023