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.
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.
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. 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. 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.
Extract — continue reading at the source.
