Early estimates point to lower Social Security cost-of-living adjustment for 2027

Social Security benefits are typically adjusted every year to keep up with rising prices.

Social Security beneficiaries saw record-high COLAs in 2022 and 2023, when the annual increases climbed to 5.9% and 8.7%, respectively. Yet as the pace of inflation subsided, the size of the annual COLA increase has also come down.

The 2026 cost-of-living adjustment was 2.8%. That added about $56 per month on average for retirees, and for some beneficiaries, higher Medicare premiums offset that increase.

Now, new government inflation data for January suggests the cost-of-living adjustment for 2027 may be even lower, if the pace of inflation stays the same in the coming months.

The 2026 COLA affects around 75 million beneficiaries, according to the Social Security Administration.