Overview
- An independent analyst, Mary Johnson, has projected a 4.7% cost-of-living adjustment for 2027 that would add about $98 a month to the average $2,083 benefit, but that figure is not official.
- The official 2027 COLA will be set by the Social Security Administration using July through September CPI-W readings and will be announced in October.
- Higher prices for groceries, utilities and other everyday items are the main drivers of the larger projection and reduce the COLA’s real purchasing power.
- Medicare Part B premiums, which are set by CMS after the COLA is announced, are expected to rise and have historically eaten a substantial share of COLA gains.
- Beneficiaries should follow July–September inflation readings, avoid assuming the projection is final, and consider financial steps such as budgeting, part-time work, or consulting a fiduciary advisor for options to protect income.