Proposed increase would raise the average retired worker’s monthly benefit by about $75
KNOXVILLE, Tenn. (Smokies.LIVE Information Center) — Social Security recipients could see a 3.6% increase in their monthly benefits in 2027, according to a new forecast from AARP.
The projected cost-of-living adjustment would be the largest annual increase since 2023, if the estimate holds when the Social Security Administration announces the official figure in October.
For the average retired worker receiving about $2,071 per month, a 3.6% increase would add approximately $75 monthly, bringing the benefit to about $2,146.
Other beneficiaries would also see increases. Survivor benefits would rise by about $52 per month, while Social Security Disability Insurance recipients could see an increase of roughly $44 per month.
The annual COLA is designed to help Social Security benefits keep pace with inflation. For many retirees, Social Security is an important source of inflation-protected income.
How the 2027 COLA is calculated
The Social Security COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.
The calculation compares the average CPI-W for the third quarter — July, August and September — with the third-quarter average from the previous year.
The 2027 COLA will not be official until the Bureau of Labor Statistics releases September inflation data. The Social Security Administration is expected to announce the final adjustment in October, with the increase taking effect with January 2027 payments.
Inflation remained elevated in August, with prices up 3.5% from a year earlier, according to the information provided by AARP. Higher fuel costs have been one factor keeping inflation elevated.
The 3.6% projection is only a forecast. The final COLA could be higher or lower depending on the remaining inflation data used in the calculation.
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