When the 2027 Social Security COLA will be announced, and how it is calculated

The Social Security Administration has not yet announced the cost-of-living adjustment, or COLA, for 2027. As of Monday, Oct. 12, the latest COLA on SSA's website is the 2.8% increase for 2026. The final piece of data SSA needs, the September 2026 Consumer Price Index, is scheduled for release by the Bureau of Labor Statistics on Wednesday, Oct. 14, at 8:30 a.m. Eastern time, according to the BLS release calendar.

SSA says on its COLA summary page that it will announce the next COLA in October 2026. Until it does, any specific percentage is an estimate, not the official figure. Here is how the number is produced and what happens after it is announced.

The calendar

• Oct. 14: BLS publishes September 2026 inflation data, including the index SSA uses.
• October: SSA announces the 2027 COLA. Last year, SSA determined the 2.8% COLA on Oct. 24, 2025.
• Late November into December: COLA notices arrive. Last year SSA said notices would be available online in the Message Center of most beneficiaries' my Social Security accounts, and mailed notices went out throughout December.
• Dec. 31, 2026: SSI recipients get their January payment. SSA says that because Jan. 1 is a holiday, SSI payments for January are always made at the end of the previous December.
• January 2027: The COLA takes effect with December 2026 Social Security benefits, which are paid in January 2027.

How the COLA is calculated

The formula is set by the Social Security Act. COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W, which BLS calculates every month. By law, it is the official measure SSA uses.

According to SSA's explanation, the COLA effective for December of a given year equals the percentage increase, if any, in the average CPI-W for the third quarter (July, August and September) of that year over the average for the third quarter of the last year in which a COLA took effect. The result is rounded to the nearest tenth of a percent. If there is no increase, or if the rounded increase is zero, there is no COLA.

Because a COLA took effect in 2025, the base for the 2027 adjustment is the third quarter of 2025. SSA lists that average as 317.265.

Source: SSA CPI-W data page. Once September's figure is published, SSA averages the three 2026 months, compares that average with 317.265 and rounds the percentage change.

How it worked last year

For 2026, SSA compared the third-quarter 2025 average of 317.265 with the third-quarter 2024 average of 308.729. The calculation, (317.265 minus 308.729) divided by 308.729, times 100, rounds to 2.8%.

What it means for a monthly check

A COLA raises benefits by the same percentage for everyone, so the dollar amount depends on your benefit. In a hypothetical example, each percentage point of COLA adds $20 a month to a $2,000 benefit before any deductions. For reference, SSA estimated that the 2.8% increase for 2026 raised the average retired worker's monthly benefit from $2,015 to $2,071, according to its 2026 COLA fact sheet.

What lands in your bank account can differ from your gross benefit. Medicare.gov says most people have their Medicare Part B premium deducted automatically from their Social Security payment. The 2027 Part B premium had not been announced as of Oct. 12; the 2026 standard premium is $202.90 a month. SSA says people who receive Medicare will see their new benefit amount in the mailed COLA notice and in my Social Security's Message Center.

Other figures that usually come with it

Last year SSA published several wage-indexed amounts with the COLA, including the maximum earnings subject to Social Security tax, $184,500 for 2026, and the earnings limits for people who work while collecting benefits before full retirement age, $24,480 and $65,160 for 2026. Watch for the 2027 versions of those limits if you are still working.

What beneficiaries can do now

• Nothing is required to get the increase. Automatic annual COLAs began in 1975, SSA says, so there is no application.
• Set up or check your my Social Security account at ssa.gov/myaccount if you want to see your notice online instead of waiting for mail.
• Watch for scams. SSA reminds beneficiaries that its services are free and that no government agency will ask for personal information or advance fees by wire transfer or gift card.
• Plan around your net amount, not just the percentage, once both the COLA and the 2027 Medicare premiums are known.

This article explains how the adjustment works and is not financial advice. For your exact benefit, rely on your COLA notice or your my Social Security account.