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AARP projects 3.6% Social Security cost-of-living adjustment for 2027 based on recent inflation data

The Social Security Administration will announce the official 2027 cost-of-living adjustment (COLA) on October 14, following the release of the September Consumer Price Index (CPI) data. Current projections from advocacy groups vary slightly, with AARP forecasting a 3.6% increase and the Senior Citizens League projecting a 3.5% adjustment. These estimates are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which rose 3.5% in the 12 months through August. The 2027 COLA will be calculated by averaging the CPI-W index levels for July, August, and September and comparing them to the third quarter of 2025. A 3.6% adjustment would represent a significant increase compared to the 2.8% COLA that took effect in 2026. If the 3.6% projection holds, the average monthly benefit for a retired worker would increase by approximately $75. However, some experts note that while the adjustment helps, it may not fully offset the high costs of essentials like food and energy for seniors on fixed incomes.

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