Social Security's cost-of-living adjustment could reach nearly 4% in 2027

MoneyWatch Social Security recipients could get a nearly 4% cost-of-living adjustment, forecasters say .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi May 12, 2026 / 2:18 PM EDT / CBS News Add CBS News on Google Social Security recipients could receive a 2027 cost-of-living adjustment (COLA) of nearly 4%, driven by inflation climbing at its fastest pace in almost three years.Seniors and others who receive Social Security benefits could see a COLA of 3.9% next year, according to a new estimate from the Senior Citizens League, an advocacy group for older Americans. "This is up quite a bit from earlier in the year, when our projection generally sat between 2% and 3%," Alex Moore, the statistician for the Senior Citizens League, told CBS News in an email.As of January, the average retired worker received $2,071 in monthly Social Security benefits, according to the agency. A 3.9% boost would add $80.77 to the typical monthly check, raising it to about $2,152.The COLA is meant to help benefits keep pace with inflation, but the calculation is backward-looking. Because the 2027 adjustment will be based on inflation from July through September, seniors may lose ground if prices rise sharply before or after that period.Reflecting these challenges, older Americans have told the advocacy group they're struggling financially amid the recent spike in fuel prices caused by the Iran war, Moore added. Seniors received a 2026 COLA of 2.8%, but the Consumer Price Index rose at an annual rate of 3.8% in April and 3.3% in March. That means millions of Social Security recipients aren't keeping up wit...