Beneficiaries of Social Security are eagerly anticipating the announcement of the 2027 cost-of-living adjustment (COLA), a yearly increase designed to help benefits keep pace with inflation. Since 1975, the Social Security Administration (SSA) has automatically adjusted payments annually to reflect changes in the cost of living.
Recent government data indicates that inflation slightly eased in July but remained above three percent, maintaining a steady level since March. Inflation saw a notable peak of 4.2% in May, a surge linked to geopolitical tensions and rising energy costs, factors that have exerted financial pressure on many households across the United States.
Given this economic backdrop, recipients of Social Security benefits are closely monitoring the forthcoming COLA update, which is based on inflation measurements during the third quarter of the year.
Mark your calendar for the official 2027 Social Security COLA announcement
The SSA calculates the annual COLA by comparing the Consumer Price Index (CPI) data from July through September of the current year to the same quarter from the previous year. The Bureau of Labor Statistics is scheduled to release September’s CPI figures on October 14 at 8:30 a.m. Eastern Time, an event that triggers the SSA’s official announcement shortly thereafter.
Once the data is released, the SSA will promptly reveal the new COLA percentage, which dictates the increase in Social Security payments for the upcoming year. Updates will be made available on relevant platforms as soon as the announcement is made public.