When will the Social Security cost-of-living adjustment (COLA) for 2027 be announced?

The Social Security Administration (SSA) makes a cost-of-living adjustment (COLA) to retiree benefits each year to account for inflation.

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a monthly measure of the cost of goods and services produced by the Bureau of Labor Statistics. To determine how much to adjust benefits, data from the third quarter of the current year is compared with the third quarter of the previous year.

The COLA for 2027 will be determined by comparing the CPI-W in Q3 2025 to the CPI-W in Q3 2026.

Find out when we'll learn what the 2027 increase will be, how much benefits could go up and more.

The 2027 Social Security COLA should be announced on Oct. 14, 2026, in conjunction with the release of the CPI-W data from 2026.

Beneficiaries will be notified of their specific benefit rate in Dec. 2026, with the COLA reflected in most checks starting in Jan. 2027.

The COLA for 2026 was 2.8%, increasing benefit checks by an average of about $56 per month.

Estimates for 2027 are more robust: In July, AARP predicted a 3.6% adjustment, while independent analyst Mary Johnson forecast a COLA of 3.7%.

The Senior Citizens League, a nonprofit that advocates for older Americans, is projecting a similar 3.8% increase for 2027. A 3.8% uptick would mean the average benefit for retirees would rise by $77 a month, from $2,026 to $2,103.

According to TSCL, that's far short of the average senior cost of living, about $2,700 per month.

Social Security benefit checks should reflect the COLA starting in January 2027. Beneficiaries receive checks based on their date of birth:

• If you were born between the 1st and the 10th of the month, you should see the COLA in the check that arrives on Jan. 13, 2027.
  
• If you were born between the 11th and 20th of the month, expect it on Jan. 20, 2027.
  
• If you were born between January 21st and the end of the month, the first new check should arrive on Jan. 27, 2027.

Some recipients will receive the increase sooner, however.

• If you start receiving Social Security benefits before May 1998, your first check of the year should arrive on Jan. 3, 2027.
  
• If you receive Supplemental Security Income (SSI), those benefits are typically paid on the first of the month. Since New Year's Day is a federal holiday, those checks will be distributed on Dec. 31, 2026.

The full calendar of Social Security payment dates is available online.

While the new COLA won't appear on benefit checks until 2027, some changes to Social Security have already taken effect.

1. Full retirement age has gone up: At full retirement age (FRA), you can receive 100% of your Social Security benefits. For individuals born in 1960 or later, the FRA in 2026 is 67. This completes the phased-in transition from the previous age of 65. (People born on Jan. 1 should refer to the previous year, however.)

2. The Social Security tax limit has increased: The maximum taxable earnings limit for Social Security in 2026 is $184,500, up from $176,100 in 2025.

3. You can earn more while still collecting benefits: The Social Security earnings test limits how much you can receive while still working.  

• For 2026, if you are under FRA for the entire year, the yearly earnings limit is $24,480. The SSA will deduct $1 from your benefit payments for every $2 you earn above that amount.
• If 2026 is the year you reach FRA, the limit on your earnings is $65,160, and $1 in benefits will be deducted for every $3 you earn above that amount. (Only earnings up to the month before you reach your full retirement age are counted, not your earnings for the entire year.)
• After you reach your FRA, you can earn any amount without reducing your Social Security benefits.

Social Security won't cover all your expenses in retirement. Consider these strategies to grow your nest egg

1. Retirement accounts

In 2026, individual 401(k) contributions are up to $24,500 annually, and you can put up to $7,500 in a traditional or Roth IRA. If you're 50 or older, you can take advantage of catch-up contributions, which tack on another $7,500 to 401(k) limits and another $1,100 to most IRAs. If you're between 60 to 63 and your plan allows it, you can contribute an extra $11,250 rather than the $8,000 standard catch-up amount.

2. Annuities

An annuity is a contract with an insurance company that converts a lump sum or series of payments into a guaranteed stream of income.

As Americans worry about outliving their retirement savings, annuities are growing in popularity. According to trade organization LIMRA, U.S. annuity sales hit $104.6 billion in the first quarter of 2026.

Some annuities offer additional benefits, such as cost-of-living adjustments to offset inflation and increased payouts to cover long-term care.

3. Savings and investments

High-yield savings accounts or CDs. You're not going to get rich putting all your money in an HYSA or a CD, but you're not going to lose any of it, either.

With some CDs paying more than 4.00%, you can lock in a rate now before Fed rate changes reduce their earning potential.

Bonds. Bonds offer regular interest payments and have historically offered lower risk than the stock market. Pay close attention to ratings, though. Bonds with AAA ratings indicate very low default risk, whereas bonds with subpar ratings (BBB or lower) carry higher default risk.

Investments. The closer you get to retirement, the more you'll need to adjust your portfolio to a lower-risk profile — with a heightened focus on dividend-paying stocks and conservative funds. 

If you're within five years of retirement, your priority should shift toward preserving capital and increasing your allocation of low-risk investments like bonds, CDs and Treasuries.

4. Reverse mortgages

If you're a homeowner, you could turn your home equity into cash with a reverse mortgage, which provides a lump sum, monthly installments or a line of credit.

As long as you keep up with insurance, property taxes and upkeep, repayment isn't due until you die, sell the home, or stop making it your primary residence. The upside is that you'll have additional funds to live on, but you risk foreclosure if you fall behind and you could be leaving your heirs with a financial mess to clean up. 

FHA-approved Home Equity Conversion Mortgages (HECMs) require borrowers to be at least 62, but banks also have proprietary reverse mortgages for borrowers as young as 55.

5. Keep working

While the full retirement age (FRA) for anyone born after 1960 is 67 years old, you'll earn credits that increase your monthly check by a percentage (about 8% per year) for each month you wait to claim, up to age 70.

The earliest you can collect Social Security is 62, but in 2026, the income cap is $24,480 a year. Anything over that, you'll sacrifice $1 of your benefit check for every $2 you earn above the maximum.

Starting the month you reach FRA, you can earn any amount and still receive your full Social Security benefits.

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