The 2027 Social Security COLA has not been set yet, and the official number is expected later in 2026 after inflation data are known. For retired workers, spouses, some children and people with disabilities, that means the monthly increase tied to benefits is still unresolved.
In 2026, Social Security benefits rose 2.8%. A typical recipient saw a bit more in the monthly deposit after that increase because the COLA is applied to a person’s base benefit, and later adjustments build on that amount.
Social Security and CPI-W
A cost-of-living adjustment is a yearly increase intended to help benefits keep pace with inflation. For Social Security, the government uses CPI-W to measure that inflation, so the final 2027 figure will depend on how those prices move before the calculation is locked in.
The way the formula works can create very different results over time. If someone claimed Social Security early, the monthly benefit was permanently reduced before later COLAs were added. If someone waited past full retirement age, they locked in a higher base benefit, and every later COLA built on the larger number.
Retirees and monthly bills
The issue matters because retirees tend to devote more of their budgets to healthcare, prescriptions and housing than the average worker. Many also rely on Social Security as a main source of income, so even a modest change in the annual adjustment affects the monthly check that helps cover routine bills.
That is why some groups have pushed for a new formula built around seniors’ expenses instead of CPI-W. The concern from others is that changing the rules could make the program more expensive or produce smaller increases in some years, which is the main tradeoff in the debate over the current formula.
Later in 2026
The next step is the same one that sets every Social Security COLA: inflation has to be measured first. Later in 2026, the official 2027 number should be finalized, and beneficiaries will then know how much their monthly payments are scheduled to rise.
