Here's the Early Estimate for the 2027 Social Security Cost-of-Living Adjustment (COLA)

The Motley Fool

by newsfeedback@fool.com (Adam Levy)

February 19, 2026

AI-Generated Deep Dive Summary

Retirees saw a 2.8% increase in their Social Security payments in January, adding approximately $55 to the average monthly benefit. This adjustment reflects the annual cost-of-living adjustment (COLA), which aims to help seniors keep up with rising living expenses. While this year's COLA has already been implemented, experts are already looking ahead to 2027 and updating their models based on the latest inflation and jobs data. Analysts from The Senior Citizens League, the Congressional Budget Office (CBO), and independent expert Mary Johnson have incorporated recent Bureau of Labor Statistics (BLS) data into their predictions for next year's COLA. Their updated models suggest that the 2027 adjustment could be influenced by factors such as current inflation trends and economic conditions. Understanding these projections is crucial for retirees planning for future benefits. The COLA formula relies on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation experienced by a large portion of the U.S. population. Fluctuations in key economic indicators, such as employment rates and price changes, will play a significant role in determining the final COLA percentage for 2027. For retirees and those nearing retirement age, staying informed about potential COLA changes is essential for financial planning. A higher-than-expected COLA could provide much-needed relief from rising costs, while a lower adjustment might require careful budgeting. Investors, too, should pay attention to these trends, as they can impact overall market conditions and consumer spending patterns. In summary, while the 2027 Social Security COLA is still months away, early projections based on current data offer valuable insights for retirees and financial planners alike. As inflation and economic factors continue to evolve, these models will likely undergo further refinements, shaping expectations for future benefit adjustments.

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Originally published on The Motley Fool on 2/19/2026