The Social Security cost-of-living adjustment for 2027 will be a 2.8% increase in benefits, 0.3 percentage points higher than January's prediction, the Senior Citizens League predicted Friday.
A 2.8% increase would mirror the 2026 COLA.
A 2027 COLA at this level "would only exacerbate seniors' financial stress," the seniors' group said in a statement.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis in January, the U.S. Bureau of Labor Statistics reported Friday. Over the last 12 months, the index increased 2.4% before seasonal adjustment.
The 2027 cost-of-living adjustment, to be announced Oct. 14, will be calculated by taking the average annual inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), for July, August and September.
A COLA of 2.8% would raise the average monthly benefit $54 for the average recipient — from $1,926 to $1,980. For retired workers, it's an increase of $58 —from $2,075 to $2,133, according to benefits check data released by the Social Security Administration in January.
It would be higher than 2025's COLA of 2.5% but lower than the 2024 COLA of 3.2%.
The Senior Citizens League's research "shows that 57.6% of America's 55.8 million seniors have forgone at least one healthcare product or service to cut costs in the last 12 months," the group said. "The top medical services that seniors skip to trim their budgets are dental (42.3%), vision (28.8%), and hearing (19.6%)."
The seniors who most depend on the COLA are more likely to forgo care, according to the group.
January Inflation Highlights
The index for shelter rose 0.2% in January and was the largest factor in the all items monthly increase.
The food index increased 0.2% over the month as did the food at home index, while the food away from home index rose 0.1%.
These increases were partially offset by the index for energy, which fell 1.5% in January. The index for all items less food and energy rose 0.3% in January. Indexes that increased over the month include airline fares, personal care, recreation, medical care and communication. The indexes for used cars and trucks, household furnishings and operations, and motor vehicle insurance were among the major indexes that decreased in January.
Over the past 20 years, the Social Security COLA has averaged 2.6%.
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