- Social Security benefits are projected to increase by 3.8 percent in 2027, up from a 2.8 percent adjustment in 2026, according to The Senior Citizens League.
- The official increase, called a Cola or cost-of-living adjustment, will be announced by the Social Security Administration on Oct. 14.
- If the 2027 projection is correct, recipients’ average monthly payment would increase to $2,012, up more than $70 a month compared to June 2026’s average $1,938 benefit.
- Economists warn that inflation could rise further due to ongoing geopolitical conflicts such as the war in Iran, which would worsen financial pressure on retirees even if adjustment estimates increase.
- In addition, a critical funding source for Social Security is projected to run out by 2032, which could trigger a 30 percent reduction in payments and lower average monthly benefits from $2,071 to $1,449 in today's terms.
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