Social Security Cost of Living Adjustment (COLA) Announced for 2027

The Social Security Administration has officially announced the cost-of-living increase for 2027. There will be a 3.6% benefit increase on Social Security benefits including Old-Age, Survivors, Disability Insurance (OASDI), and Supplemental Security Income (SSI). This increase means that if you are currently receiving benefits, you can expect on average $75 more per month. 

The cost-of-living adjustment is tied to the consumer price index (CPI). CPI is the average change over time in the cost of a basket of consumer goods. Think how much the cost of the same bag of groceries has changed in cost over time. The social security administration takes that average, which was a 3.7% increase in the last 12 months, and calculates the increased Social Security benefit. 

When we think about what matters most to our clients collecting Social Security, we want you to feel confident that the annual adjustment made is keeping up with increasing prices and inflation. The 2027 increase is higher at 3.6% than in 2026 at 2.8%, and above the 10-year average at 3.1%. 

While this adjustment is higher than usual, we understand that your other expenditures such as healthcare and energy may be exceeding what this adjustment covers. If you feel your income sources aren’t keeping up, please don’t hesitate to reach out about your financial strategy.  

This change can be viewed in your mySocialSecurity account starting in late November, or if you have not enrolled in paperless notices, you will receive it in the mail in December. 

It is important to know you will only receive this adjustment if you have started collecting Social Security or are 62 and older. The adjustment does not apply to those under 62 and not collecting. 

Social Security can be an important and vital income source for many Americans; We want you to feel and believe that your financial strategy is keeping up and working for your needs. If any questions or concerns arise, we are always more than willing to discuss and provide education, just let us know! 

Sources: 

https://www.bls.gov/news.release/pdf/cpi.pdf 

https://www.ssa.gov/news/en/press/releases/2026-10-14.html 

Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Investment Advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice. 

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