Social Security could get big boost for 2027. See latest COLA forecast

While the official 2027 Social Security Cost-of-Living Adjustment (COLA) announcement remains several months away, a nonpartisan group released its latest prediction this week suggesting seniors could be in line for a strong boost.

On Tuesday, July 14, the nonpartisan senior advocacy group, The Senior Citizens League, released its monthly COLA forecast for 2027, projecting a 3.8% increase — which is the same forecast as in June. The increase would be 1.1 percentage points higher than the increase for 2026.

The COLA is an annual adjustment to Social Security payments that goes into effect in January each year to counteract inflation for beneficiaries — people who are retired, disabled workers or survivors.

TSCL also advocated for the Social Security 2100 Act in its forecast. The bill was reintroduced this year with ways to modify the Social Security system.

"Meanwhile, Congress reintroduced the Social Security 2100 Act, which would provide long-term relief to seniors losing buying power due to high inflation. The bill would raise benefits by 2%, set the new minimum benefit to 125% of the Federal poverty line, change the COLA calculation to the CPI for the Elderly (CPI-E), and improve the benefits calculation formula," TSCL said.

The bill was first introduced in 2023 by Congressman John Larson, D-Connecticut.

"Although the Social Security 2100 Act is unlikely to pass in the current Congress, it should. The bill is the gold standard for Social Security reform and accomplishes the majority of changes older Americans want to see for the program," TSCL Executive Director Shannon Benton said in the July 14 update. "The reality is that poverty is increasing rapidly among American seniors, who make up the fastest-growing portion of the homeless population. Adjusting the minimum benefit to above the Federal poverty line would almost certainly slow this trend, although more holistic efforts may be required to stop it entirely."

In the past 12 months (June 2026 to June 2025), there was a 3.5% increase in all items, including food, energy, apparel, electricity and other measured indices that make up a living, according to the U.S. Bureau of Labor and Statistics June 14 press release.

Here's more on the 2027 COLA forecast:

What is the updated 2027 COLA forecast?

The 2027 COLA forecast stands at 3.8% as inflation rises, according to The Senior Citizens League's July 14 update. If that goes into effect, the average Social Security check for retired workers would increase by $73.62.

In June, TSCL had the COLA forecast also at 3.8%.

The TSCL releases a COLA prediction each month based on the Consumer Price Index, Federal Reserve interest rate and the National Unemployment rate from the U.S. Bureau of Labor Statistics.

When will the official COLA be announced for 2027?

The official COLA increase for 2027 will be announced in October 2026, based on third-quarter inflation data.

How are COLA forecasts calculated?

According to the Social Security Administration, the COLA is based on increases in the Consumer Price Index for urban wage earners and clerical workers (CPI-W) calculated monthly by the U.S. BLS — CPI-W is the average change over time in the prices paid by urban wage earners and clerical workers for a market basket of consumer goods and services, per the BLS.

What were the big Social Security changes in 2026?

At the beginning of 2026 recipients received a 2.8% COLA for Social Security and Supplemental Security Income (SSI) payments, according to the SSA's COLA Fact Sheet and American Association of Retired Persons, increasing payments about $56 per month.