Wondering What to Expect for Next Year's Social Security COLA? Here's What History Says Could Be Coming in 2027.
The Motley Fool
by newsfeedback@fool.com (Katie Brockman)February 24, 2026
AI-Generated Deep Dive Summary
Retirees are already looking ahead to their next Social Security cost-of-living adjustment (COLA) in 2027, despite just receiving a 2.8% increase this year. While the official COLA for 2027 won’t be announced until October, historical trends offer valuable insights into what retirees might expect. The COLA is designed to help offset rising costs, but its impact varies each year based on economic conditions.
Historically, COLA increases have fluctuated significantly. In the 1970s and 1980s, adjustments often exceeded 5%, reflecting high inflation rates during that era. However, in recent years, COLAs have been more modest, with increases hovering around 2-3%. This unpredictability highlights the challenge retirees face in planning for future income stability. While the exact formula for calculating COLA is tied to the Consumer Price Index (CPI), external factors like economic policy and global events can influence outcomes.
For those relying on Social Security, understanding historical trends underscores the importance of financial flexibility. Even modest increases can help mitigate rising costs, but retirees must remain cautious. The 2027 COLA will likely depend on inflation levels and economic stability between now and then. Retirees are encouraged to monitor economic indicators and plan accordingly, as the impact of COLA adjustments can significantly affect their ability to maintain their standard of living in retirement.
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Originally published on The Motley Fool on 2/24/2026