Social Security COLA 2027: An early look at how much payments could increase

Key takeaways
– AARP projects a 3.6 percent Social Security cost-of-living adjustment for 2027, based on current inflation data. That would increase the average retired worker’s benefit by $75 a month.
– The COLA is based on changes in consumer prices in the third quarter of the year and will be finalized in October.
– For many retirees, Social Security is the only source of inflation-protected income, making reliable COLA information an important tool for budgeting.