Social Security's Historic 2027 COLA: Here's Everything You Need to Know

Social Security beneficiaries will receive a 2027 cost-of-living adjustment (COLA) announcement on October 14, 2026. Independent estimates project a 3.5% increase, which would be the sixth-largest raise in 35 years and add approximately $73 monthly to average retired workers' benefits. However, despite above-average COLAs, beneficiaries have experienced a 36% loss in purchasing power since 2000 due to inflation outpacing the CPI-W index used for calculations. Rising inflation is driven by Trump's tariff policies, the Iran war affecting oil supplies, and AI infrastructure demand creating chip shortages.