What could the 2027 COLA look like?
A 3.5% cost-of-living adjustment increase is expected for 2027 based on inflation trends. AARP estimates that the increase could add about $73 per month to retirees’ benefits on average. However, the final adjustment will not be known until the necessary Consumer Price Index data is released, according to ABC45 and Fast Company.
However, the final cost-of-living adjustment will depend on inflation data and will not be official until the announcement in October.
More than 75 million Americans receive both Social Security and Supplemental Security Income benefits, which increased by 2.8% in 2026 and 2.5% in 2025. The COLA has averaged about 3.1% over the past several decades, ABC45 reported.
Will the full retirement age change?
The full retirement age is another factor that could affect people planning for retirement.
Americans can begin receiving Social Security retirement benefits at age 62. However, claiming benefits before reaching full retirement age will reduce monthly payments, according to Fast Company.
The full retirement age is currently 67 for people who turn 62 in 2026, according to SSA’s website.
Social Security faces long-term concerns
While next year’s cost-of-living adjustment could mean higher monthly payments, Social Security still faces financial challenges.
Blavity reported that Social Security is a long-standing safety net that provides financial assistance to retirees, older adults, children and those with disabilities. However, the program could run out of money in the next several years.
While that poses a significant issue, beneficiaries are not expected to lose their benefits in 2032. Instead, the projection highlights the need for changes and how bipartisan lawmakers are crafting legislation in response to it.
Source: Social Security Beneficiaries Could See This Much Extra Cash In 2027
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