Here's What High Inflation Could Mean for Your 2027 Social Security Cost-of-Living Adjustment (COLA)

Social Security’s 2027 cost-of-living adjustment (COLA) is shaping up to look a lot like the 2026 COLA. The latest projection from The Senior Citizens League (TSCL) estimates it at 2.8% with five months to go until the official announcement.

Some think this could change if inflation increases over the coming months, which is a possibility. But it might not affect your benefits the way you’re hoping.

Image source: Getty Images.

The Social Security COLA calculation looks at changes in third-quarter inflation data from one year to the next. Higher inflation translates to a higher COLA. But that doesn’t mean your quality of life is likely to improve.

Higher inflation also brings higher living costs, so any extra money you receive will likely go toward covering those. In spite of COLAs, Social Security has been slowly but surely losing buying power, so you may have to rely more heavily on personal savings to help you cover your expenses in 2027 and beyond.

Once the Social Security Administration announces the official COLA in mid-October, you’ll be able to estimate your benefit increase. You’ll also get a personalized COLA notice in December giving your exact 2027 benefit amount. This will give you what you need to know to start building a retirement budget for next year.

If the 2027 COLA isn’t enough for you, you may need to look into other retirement income sources, like personal savings, a job, or other government benefits, like Supplemental Security Income (SSI), to make ends meet.