Early projections estimate the 2027 Social Security Cost-of-Living Adjustment (COLA) will be approximately 3.6% to 3.8%. This projection is higher than the 2.8% adjustment that went into effect for 2026. Federal laws stipulate that the amount of money paid to Americans who receive old age and disability benefits must be adjusted annually for inflation. This COLA rate is applied to benefit payments for Social Security retirement, Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and VA disability.
At the 3.8% rate, the average retired worker’s monthly benefit will increase by about $74. The average SSDI recipient will see their monthly benefit increase by about $62. SSI recipients, on average, will only realize a modest $28 bump. Because actual VA disability compensation varies widely by ratings, those Veterans will see a wide range of monthly payment increases from about $7 to $150.
The official 2027 COLA announcement will come next month. The Social Security Administration uses one of the subsets of the Consumer Price Index (CPI) called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the year (July, August, and September) to calculate the Social Security cost-of-living adjustment.
