2027 COLA Set at 3.6% - AMAC Foundation
The Bureau of Labor Statistics announced the final piece of the 2027 Social Security COLA determination this morning. September’s CPI-W reading came in at 330.654, bringing the third-quarter average CPI-W to 328.746. Compared to the 2026 average CPI-W for the same period, the year-over-year change is 3.6%, representing the gross cost-of-living adjustment that will be reflected in January 2027 benefit payments.
The net increase beneficiaries receive must account for the 2027 Medicare Part B premium. The 2026 Medicare Trustees Report projects that the premium will rise by $6.60, to $209.50. As a result, for those with Medicare Part B premiums deducted, an average beneficiary’s January payment is expected to reflect a net increase of 3.3%.
2027 will be the 52nd automatic COLA adjustment since the Social Security Amendments of 1972 became law, requiring annual calculations to begin in 1776. The 2027 COLA will mark the sixth consecutive year in which beneficiaries receive an increase of at least 2.5%. The average COLA was 2.6% from 2000 through 2027 and 3.4% over the past decade, making the 3.6% adjustment part of an upward trend. Although the increase will help seniors offset some rising costs, it follows price increases already built into the market.
Anyone having questions about the January COLA is invited to contact the AMAC Foundation’s Social Security Advisory Service at SSAdvisor@AmacFoundation.org or by telephone at 888-750-2622.
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