Social Security 2027 COLA Projected to Reach 3.5 Percent

The Senior Citizens League projects that the 2027 cost-of-living adjustment (COLA) for Social Security will reach 3.5%. If realized, this would mark the sixth consecutive year of increases of at least 2.5%, a trend not seen in three decades.

Analysts attribute this inflation to policies enacted by Donald Trump, specifically the imposition of sweeping global tariffs on more than 80 countries in July and military attacks against Iran on February 28. The military action led to the closure of the Strait of Hormuz, which disrupted the flow of 20 million barrels of petroleum liquids daily and caused fuel prices to surge.

The 2027 COLA is expected to outpace the growth of Medicare Part B premiums for the first time since 2023. The standard premium is estimated to rise by 3.25% to $209.50 per month. The official COLA announcement is scheduled for October 14.