Social Security's 2027 COLA Set at 3.6%, Higher Than Previous Years
The Social Security Administration has announced a cost-of-living adjustment (COLA) of 3.6% for 2027, marking an increase compared to the previous three years' adjustments of 3.2%, 2.5%, and 2.8%. The COLA is calculated based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during July through September each year. The higher adjustment reflects rising inflation driven by ongoing tariffs, which increased costs across goods and services, as well as disruptions from geopolitical tensions affecting energy prices. While a larger COLA provides relief to retirees who have experienced stagnant benefits amid price increases, it also signals continued economic challenges for those reliant on fixed incomes. Retirees are generally hoping for slower, more predictable inflation in the future. The 2027 adjustment is among the largest seen over the past three decades and will be applied starting January of that year.
Topics: COLA (Cost of Living Adjustment) Federal Reserve inflation Social Security