Amid rising commodity prices continuing to hit millions of Americans, especially retirees who rely on Social Security, a much-needed increase could be coming. The cost-of-living adjustment (COLA) is aimed at easing the burden of inflation. The Social Security Administration (SSA) has announced a major date that will counter rising costs of living, setting the 2027 COLA announcement for October 14, though much of the detail is still under wraps. Based on current inflation, here is what retirees can expect from the next COLA increase.
As per the Senior Citizens League, a nonpartisan group dedicated to highlighting issues impacting millions of older Americans, the 2027 Social Security cost-of-living adjustment (COLA) is estimated to be 3.6% compared to 2.8% last year. That would boost the average check by about $70 a month.
The expected COLA this year appears to be higher than average mainly because of rising fuel prices amid U.S.-Iran tensions. Overall energy prices, which weigh heavily in the CPI-W formula, were up 14.7% year over year in July, led by a 39.1% jump in fuel oil prices.
The Social Security Administration will finalize the adjustments based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September.