Social Security COLA 2027 Projected at 3.5% as August CPI Index Hits 328.48

September 13, 2026
1 min read
Federal government office building representing administrative workforce review
Federal agencies incurred $9.5 billion in salary costs for employees on paid administrative leave during 2025, according to a GAO review.

A COLA is an annual inflation-linked adjustment to Social Security benefits, not a discretionary raise. The 2027 Social Security COLA has not been officially announced. The Social Security Administration is scheduled to announce it in October 2026, after the final third-quarter inflation figures are in.

The CPI-W, or Consumer Price Index for Urban Wage Earners and Clerical Workers, is the price index Social Security uses to set adjustments. The CPI-W August 2026 reading is available from the Bureau of Labor Statistics: consumer prices rose 0.4 percent in August, headline prices were 3.4 percent higher over the year, and the CPI-W measure used for Social Security was 3.5 percent higher over the year. The August CPI-W index stood at 328.481. These describe one month and are not the final 2027 increase.

The COLA is based on the third-quarter average CPI-W, the arithmetic mean of July, August and September. September’s figure is still needed before the calculation is complete. The September CPI release is scheduled for October 14, 2026.

The current 2026 COLA is 2.8 percent, following a 2.5 percent COLA in 2025. On September 11, 2026, The Senior Citizens League projected a 3.5 percent 2027 COLA. That is an estimate, not the official number, and the final percentage may differ once September data arrives.

A COLA is an inflation adjustment; a higher check does not necessarily mean improved buying power, because Medicare premiums are figured separately and could reduce the net gain for some beneficiaries. The 2027 COLA will be reflected in Social Security payments beginning in January 2027. Background on the Medicare-offset effect is in this earlier COLA analysis, and the announcement-timing context is covered in this forecast update.

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Sunita Somvanshi

With over two decades of dedicated service in the state environmental ministry, this seasoned professional has cultivated a discerning perspective on the intricate interplay between environmental considerations and diverse industries. Sunita is armed with a keen eye for pivotal details, her extensive experience uniquely positions her to offer insightful commentary on topics ranging from business sustainability and global trade's environmental impact to fostering partnerships, optimizing freight and transport for ecological efficiency, and delving into the realms of thermal management, logistics, carbon credits, and energy transition. Through her writing, she not only imparts valuable knowledge but also provides a nuanced understanding of how businesses can harmonize with environmental imperatives, making her a crucial voice in the discourse on sustainable practices and the future of industry.

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