Social Security recipients can prepare for a bigger paycheck.
Next year, around 70 million beneficiaries of social security and supplemental security income will benefit from increased monthly payments.
The Social Security Administration will reveal the 2027 cost of living adjustment on Oct. 14, following the Bureau of Labor Statistics’ release of the September Consumer Price Index (CPI), the data used to measure average price changes for urban wage earners and clerical workers.
The annual cost of living adjustment (COLA) increases Social Security benefits, wages, or retirement benefits to keep pace with inflation and rising spending. To determine this percentage, the Social Security Administration evaluates official consumer price statistics.
The adjustment reflects the difference between the average CPI-W during the third quarter (July to September) of the current year and the same period of the previous year.
Advocacy group The Senior Citizens League estimates the 2027 COLA could reach 3.5%, a four-year high, although the final figure depends on September inflation figures. A 3.5% increase would increase the average monthly benefit by $67.90, from $1,940.08 to $2,007.98.
An adjustment of 3.5% marks a slight decline of 0.1 percentage points from TSCL’s previous projection, but is still higher than the 2.8% increase in 2026 and the 2.5% change in 2025.
“The most important thing we’re seeing with the COLA announcement is short-term shocks to the economy that push inflation up or down over the next 30 days,” said Shannon Benton, executive director of TSCL.
For the first time, AARP released an advance COLA forecast ahead of the official announcement. Rich Johnson, vice president for financial security at the AARP Public Policy Institute, said the early estimates give families more time to adjust budgets strained by persistently rising prices.
A Nationwide Retirement Institute survey highlights that 74% of Social Security recipients have changed their finances as inflation outpaces benefit gains. Additionally, 51% reported cutting back on discretionary purchases, while 38% reduced spending on everyday essentials like groceries and prescription medications.
The AARP Public Policy Institute noted that the early projections are intended to help households better manage tight budgets amid persistent inflationary pressures.
The payment schedule for the end of 2026 will also have minor schedule adjustments. For the October 2026 to January 2027 cycle, SSI benefits will be paid on Thursday, October 1, and then again on Friday, October 30 (since November 1 falls on a Sunday). As a result, beneficiaries will receive two payments in October and none in November.
A similar change occurs in December, as the January 1, 2027 payment will be distributed earlier due to the New Year’s holiday.
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