Social Security Beneficiaries to Receive 3.6% Cost-of-Living Adjustment in 2027
The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027, marking a significant increase from the 2.8% adjustment scheduled for 2026. This represents one of the largest increases in recent years, significantly exceeding the 20-year average of 2.9%. For the average retired worker, this translates to an additional $75 per month. Notably, analysts suggest that beneficiaries may see a rare increase in actual purchasing power. While COLAs are traditionally based on the CPI-W (which tracks working adults), recent trends show below-average inflation in housing and medical care—categories where retirees spend more heavily. Because the CPI-E (designed for seniors) grew at a slower rate than the CPI-W this period, the 3.6% adjustment effectively outpaces the specific inflationary pressures faced by the elderly population.