Recipients who receive Social Security benefits are waiting to learn how much their monthly payments could increase in 2027. The annual cost-of-living adjustment (COLA) is designed to help beneficiaries maintain their purchasing power as prices for goods and services rise. The Social Security Administration (SSA) is expected to announce the 2027 adjustment today, following the release of September inflation data by the Bureau of Labor Statistics (BLS). The figures complete the third-quarter data needed to calculate the annual increase. Until the SSA confirms the percentage, estimates remain projections rather than a guaranteed increase. How much could Social Security benefits increase in 2027? The 2027 Social Security COLA is expected to be higher than the 2.8% adjustment applied in 2026. Before the official announcement, estimates ranged from 3.4% to 3.6%, depending on the inflation data used in the projections. A 3.5% adjustment could increase an average retired worker’s monthly benefit by about $71. However, the actual increase will depend on the final COLA percentage and each beneficiary’s current payment amount. The COLA is not a flat payment or a separate bonus. Instead, it increases eligible monthly benefits by a percentage, meaning recipients with different benefit amounts will see different dollar increases. How does the Social Security Administration calculate the COLA? The SSA calculates the annual adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the BLS. The formula compares the average CPI-W for July, August, and September of the current year with the average for the same three months of the last year when a COLA was determined. The September inflation report is therefore essential to the 2027 calculation. The BLS would release that data on October 14, providing the final monthly figure needed to determine the adjustment. The COLA is intended to help Social Security and Supplemental Security Income (SSI) recipients keep pace with inflation. However, the adjustment does not guarantee that every beneficiary’s increase will fully cover their individual living expenses. When will beneficiaries receive their higher Social Security payments? The 2027 COLA will take effect with Social Security benefits payable in January 2027. Eligible SSI recipients are scheduled to receive their first adjusted payment on December 31, 2026, because January 1 is a federal holiday. Beneficiaries will be able to check their individual benefit amounts through their personal my Social Security accounts. The SSA generally makes COLA notices available online in December, and it also sends notices by mail. Recipients should distinguish between the official COLA percentage and their personalized benefit notice. The percentage determines the general adjustment, while the individual notice shows the new monthly amount and any applicable deductions.