2027 Social Security COLA Update: The Latest Projection Is a Bit of a Mixed Bag for Seniors
Written by Kailey Hagen for The Motley Fool -> The latest Social Security COLA estimate is 3.8%, which is above average compared to the last 50 years. High COLAs occur alongside high inflation. The 2027 COLA could still change between now and the official announcement in Octob
The latest Social Security COLA estimate is 3.8%, which is above average compared to the last 50 years.
The 2027 COLA could still change between now and the official announcement in October.
We're inching closer to the 2027 Social Security cost-of-living adjustment (COLA) announcement. Seniors, many of whom are already struggling to make ends meet, are anxiously awaiting news of how much their checks will increase next year.
The good news is that an above-average COLA seems increasingly likely. But there's a hidden drawback to a large benefit boost that you'll need to factor into your 2027 budget.
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The Social Security Administration doesn't issue predictions about where the COLA will end up, but The Senior Citizens League (TSCL), a nonpartisan senior group, does. Its projections tend to be fairly accurate, especially as we near the October announcement date.
TSCL recently updated its 2027 Social Security COLA estimate to 3.8%. This is down slightly from 3.9% the month before. However, it's still well above the 2.8% it had predicted earlier in the year, before the war with Iran triggered skyrocketing energy costs.
A 3.8% increase may not feel like much, given that beneficiaries saw an 8.7% COLA in 2023, but it's solidly above average compared to the last 50 years. It would add roughly $79 to the $2,081 average Social Security benefit as of April 2026.
