Social security 2027 cola announcement

On 11 October 2026, the Social Security Administration officially announced that Social Security beneficiaries and Supplemental Security Income recipients will receive a 2.5% Cost-of-Living Adjustment (COLA) for the 2027 calendar year. This adjustment is designed to help millions of Americans keep pace with inflation, ensuring that the purchasing power of their benefits is not eroded by rising costs. The 2.5% increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as calculated by the Bureau of Labor Statistics for the third quarter of 2026. Starting in January 2027, the average retiree can expect to see a modest increase in their monthly payments. While the adjustment aims to provide financial relief, some advocacy groups have expressed concerns that the percentage may not fully reflect the specific inflationary pressures faced by seniors, particularly regarding healthcare and housing expenses. The Social Security Administration will begin mailing personalized COLA notices to beneficiaries in early December 2026, detailing the specific dollar amount increase for each individual recipient.