Social Security's 2027 Raise: What the Cost-of-Living Adjustment Is and Why It's Debated

Every October, tens of millions of Americans who get Social Security wait for one number: the cost-of-living adjustment, or COLA. It decides how much bigger their monthly checks will be next year.

Coverage from mid-October 2026 shows the announcement for 2027 getting a lot of attention. CNBC reports the adjustment may be above average, and also that some people say it's not enough. Here's what that means and how the yearly raise works.

What happened

According to CNBC, the 2027 COLA may come in above its historical average. The same headline notes that some people argue the increase still won't be enough to keep up with what retirees actually spend.

AL.com reported that the COLA announcement was scheduled for October 14, 2026, and framed its coverage around how much more retirees will get in 2027. MarketWatch also focused on the practical question of how much extra money could show up in monthly checks next year.

Separately, Fox Business reported that Social Security's chief, Bisignano, said the program will "be around for another 90 years." That comment speaks to a long-running worry about whether the program can keep paying full benefits.

The headlines we reviewed don't give the final percentage, so we don't report one here. Check the Social Security Administration's official announcement for the exact figure.

How the COLA works

Here's some background. The COLA is meant to protect benefits from inflation, which is the general rise in prices over time. Without it, a fixed monthly check would buy a little less every year.

The raise is tied to a government price measure called the CPI-W, which tracks price changes for urban wage earners and clerical workers. The government usually compares average prices in July, August and September with the same months a year earlier. If prices went up, benefits go up by about that percentage, starting with January payments.

That explains the October timing. The September inflation data comes out in mid-October, and the COLA is announced at the same time.

Why some say it's not enough

A raise can be larger than usual and still leave some retirees feeling squeezed. That's the tension in CNBC's headline. As background, critics have long pointed to a few reasons.

First, the CPI-W tracks the spending of working-age households, not retirees. Older Americans usually spend more of their money on health care and housing, and those costs can rise faster than overall prices.

Second, Medicare Part B premiums are often taken directly out of Social Security checks. When those premiums go up, part of the COLA is used up before the retiree ever sees it.

Third, the COLA only adjusts for price changes going forward. It doesn't make up for any earlier stretch when costs grew faster than benefits.

Why it matters for everyday people

For many retirees, Social Security makes up a large share of their income, so even a small change in the percentage affects the household budget. People with disabilities and survivors who get benefits are adjusted by the same COLA.

Remarks like the one Fox Business reported touch on a bigger question. As background, government trustees have warned for years that Social Security's trust funds could run short in the coming decade unless Congress acts. That wouldn't end the program, but it could mean reduced benefits. How Congress handles that problem is a separate debate from the yearly COLA. Both affect what retirees can count on.