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Social Security Benefit Adjustments for 2027 Projected to Hit Three-Year High
cnbc · 2026-09-11
New estimates suggest Social Security beneficiaries could see a 3.5% to 3.6% cost-of-living adjustment in 2027, driven by recent consumer price index data.
What Happened
Projected Benefit Adjustments: Independent analysts and advocacy groups are forecasting a cost-of-living adjustment (COLA) for 2027 between 3.5% and 3.6%. This potential increase would mark the highest annual adjustment for Social Security and Supplemental Security Income recipients in three years.
Inflationary Drivers: The calculation for these adjustments relies on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which rose 3.5% over the past year. Experts note that future projections remain sensitive to volatility in oil prices, which continue to exert significant pressure on broader inflation metrics.
Impact on Beneficiaries: Estimates from organizations like the AARP suggest that a 3.6% increase could boost the average monthly benefit for retired workers by approximately $75. These adjustments are critical for maintaining purchasing power for over 75 million Americans who rely on these government payments.
Official Announcement Timeline: The Social Security Administration is expected to finalize and announce the official 2027 COLA in October. This final determination will incorporate the complete set of third-quarter government inflation data to ensure the adjustment accurately reflects the economic environment.