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Preliminary estimates suggest that the
The calculation process involves comparing the average CPI-W for the third quarter of 2026 with that of the same period in 2025. The difference between these two averages will determine the percentage increase for the 2027 COLA. The first month contributing to this calculation is July 2026, with the CPI-W inflation report for that month set to be released on August 12, 2026. Experts will gain clearer insights into the potential COLA after this report, although the estimate may still fluctuate as August and September data become available.
If the 3.8% estimate is confirmed, it would represent a significant increase compared to the 2026 COLA of 2.8%. The average retired worker currently receives approximately $2,026 per month in Social Security benefits, meaning a 3.8% increase would raise this amount to about $2,103, providing an additional $77 monthly. However, many seniors may find that this increase does not alleviate their financial burdens, as rising inflation often accompanies higher COLA adjustments, impacting costs for essentials like food, housing, and transportation.
Benton has called on Congress and the President to consider increasing Social Security benefits to help seniors manage their daily expenses more effectively. She referenced President Franklin D. Roosevelt's original vision for the program, which aimed to provide support during times of economic hardship and inflation. Recent COLA history shows fluctuations, with the 2025 COLA at 2.8%, the 2024 COLA at 2.5%, and the 2022 COLA peaking at 8.7%, the highest in decades. If the current estimate holds, the 2027 COLA would be higher than the last two yearly increases but significantly lower than the pandemic-era peak.
