Just Days Away: Social Security to Announce 2027 COLA Increase

Published in RINewsToday on October 12, 2026

In just a few days, nearly 279,000 Rhode Islanders who rely on Social Security and Supplemental Security Income (SSI) will learn how much their monthly checks will increase in 2027 when the Social Security Administration (SSA) announces next year’s cost-of-living adjustment (COLA). Social Security recipients will see the increase in January, while SSI recipients will receive their adjusted payments on Dec. 31, 2026, because New Year’s Day is a federal holiday. The additional income will help them keep pace with rising costs.

Older Rhode Island beneficiaries will be joining 75 million Americans—including roughly 71 million Social Security beneficiaries and between 7.3 and 7.5 million SSI recipients—awaiting this highly anticipated news.

SSA is expected to announce the official 2027 COLA on Wednesday, Oct. 14, following the release of September inflation data by the U.S. Bureau of Labor Statistics.

According to the Virginia-based The Senior Citizens League (TSCL), the SSA’s COLA for 2026 was 2.8 percent, somewhat higher than the 2.5 percent COLA implemented at the start of 2025. TSCL predicts that the COLA for 2027 will tick up to 3.5 percent. AARP experts project an even higher COLA increase for 2027 than TSCL estimates, at 3.6 percent.

Congress enacted the COLA provision as part of the 1972 Social Security Amendments, and automatic annual COLAs began in 1975, says SSA, noting that before then Congress could only increase this benefit through special legislation. The new provision tied COLAs to the annual increase of the Consumer Price Index (CPI-W).

SSA calculates the COLA by comparing the average CPI-W for July, August and September with the average for the same three months of the previous year. The percentage is rounded to the nearest tenth of one percent and determines the annual adjustment.

With the 3.5 percent projection, the average beneficiary’s monthly benefit increases by $67.90. The current average beneficiary receives $1,940.08 in their monthly Social Security check. With a 3.5 percent COLA, that would rise to $ 2,007.98, estimates TSCL

If TSCL’s calculation holds, the 2027 COLA would land right in the middle of the ranking historically—ranking 19th among all COLA adjustments since the federal government started using its current inflation math in 1977. By comparison, the recent boost seniors received at the start of 2026 was a bit more modest, tying for 27th place.

“The biggest thing we’re watching with the COLA announcement coming are short-term shocks to the economy that push inflation way up or down in the next 30 days. Of the three CPI-W figures used to calculate the COLA, two are already in,” said TSCL Executive Director Shannon G. Benton in a statement releasing the 2027 estimated projections.

“No matter if the COLA announcement comes in slightly higher or slightly lower than our prediction, seniors will probably end up disappointed in the long run,” said Benton, noting that older Americans allocate their budgets differently than people still in the workforce, so inflation hits them differently. The consumer price index (CPI) captures the experience of urban wage earners, which doesn’t represent the average senior’s budget, she adds.

“The COLA only happening once a year puts life on hold for a lot of seniors. When prices rise, they don’t rise next January when your benefit check goes up. They rise right now. We need to consider COLAs that compound quarterly or monthly so seniors can keep up throughout the year when inflation comes in above Federal Reserve targets, like in 2026,” adds Benton.

Advocates Push for CPI-E Index

In a recent AARP Sept. 11 blog post, “Social Security COLA 2027: An Early Look at How Much Payments Could Increase,” writer Deirdre Shesgreen interviewed Rich Johnson, the vice president for financial security at the AARP Public Policy Institute. Johnson emphasized that the organization’s COLA forecast is meant to give older adults a head start on managing their 2027 finances. “Family budgets have been under increasing pressure because of rising prices,” Johnson noted. “The sooner that we can give them reliable information as to how much their benefits might [increase next year], the sooner they can start planning,” he said.

“Most seniors depend on Social Security for some or all of their income, and the program’s annual Cost of Living Adjustments (COLAs) for inflation help keep them from falling behind,” says Max Richtman, President & CEO, National Committee to Preserve Social Security & Medicare, noting that even the estimated 3.5-3.6% increase will barely be enough for seniors to tread water.

“That’s because the COLA is based on an inflation index that does not account for the impact of inflation on seniors’ true expenses, especially health care costs – which are rising faster than the general inflation rate,” said Richtman, calling for the adoption of the CPI-E (Consumer Price Index for the Elderly). This CPI index is designed to better reflect older American’s spending patterns.

“What we know is that when the COLA is announced, it will be far too low to make up for the crushing prices everybody is facing right now. But seniors and those on fixed incomes are being crushed the hardest,” said Alex Lawson, Executive Director of Social Security Works.

His concerns come as Census Bureau figures show that the poverty rate among Americans aged 65 and older rose from 9.4 percent in 2020 to 15.4 percent in 2025, according to the Supplemental Poverty Measure, which accounts for medical expenses and other living costs.

“And still Republican proposals, when we see them, include provisions to cut back on the COLA, which is just a cruel benefit cut. We need to expand Social Security, increase benefits, raise the COLA, and pay for it by having billionaires pay the same rate on all of their income into Social Security. Just like the rest of us do,” argued Lawson.

Improving SSA’s Benefit Calculation Formula

TSCL advocates for the Social Security 2100 Act, legislation championed by Congressman John Larson (D-Connecticut), first introduced in 2017 and reintroduced in 2026.

Lawmakers reintroduced this legislative proposal to provide long-term relief to seniors losing buying power due to high inflation. The bill would raise benefits by 2%, set the new minimum benefit to 125% of the Federal poverty line, change the COLA calculation to the CPI for the Elderly (CPI-E), and improve the benefits calculation formula, said TSCL.

“Although the Social Security 2100 Act is unlikely to pass in the current Congress, it should. The bill is the gold standard for Social Security reform and accomplishes the majority of changes older Americans want to see in the program,” says TSCL’s Benton in a statement released on July 14. “The reality is that poverty is increasing rapidly among American seniors, who make up the fastest-growing portion of the homeless population. Adjusting the minimum benefit to above the Federal poverty line would almost certainly slow this trend, although more holistic efforts may be required to stop it entirely,” she says.

Aging Groups Say 2026 Social Security COLA Falls Short of What’s Needed for Seniors

Published in RINewsToday on October 27, 2025/

On October 24, the Social Security Administration (SSA) announced a 2.8 percent Cost-of-Living Adjustment (COLA) increase for 75 million beneficiaries, including those receiving Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) payments.

Specifically, nearly 71 million Social Security beneficiaries and OASDI recipients will see a 2.8 percent COLA starting in January 2026. In contrast, SSI recipients will begin seeing their increased payments on December 31, 2025. (Note: Some individuals receive both Social Security benefits and SSI.)

According to the SSA, the average Social Security retirement benefit will increase by approximately $56 per month, bringing the average monthly check to $2,071, up from $2,015 in 2025. For married couples, the average increase will be $88, raising their monthly benefit from $3,120 in 2025 to $3,208 in 2026.

Over the past decade, the average COLA increase has been about 3.1 percent. (Note our calculations, below, which excluded the highs and lows due to COVID comes out with an average of 2.6%). For 2025, the COLA was 2.5 percent. However, in historical terms, this COLA ranks about average, coming in 29th out of the 51 COLAs announced since the government began tying COLAs to the Consumer Price Index (CPI) in 1975, according to The Senior Citizens League (TSCL).

The Social Security Act mandates how the COLA is calculated, tying it to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Department of Labor’s Bureau of Labor Statistics.

The SSA’s announcement, originally scheduled for October 15, was delayed by nine days. According to the federal agency and multiple news outlets, the delay was caused by furloughed employees at the Bureau of Labor Statistics, which hindered the timely release of the September CPI-W report during the federal government shutdown.

Other annual adjustments, effective each January, are based on increases in average wages. For 2026, the maximum amount of earnings subject to Social Security taxes (the taxable maximum) is expected to rise to $184,500 from $176,100.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we ensure benefits reflect today’s economic realities and continue to provide a foundation of security,” said Social Security Administration Commissioner Frank J. Bisignano in a statement announcing the 2026 COLA. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

Notification of 2026 COLA Increase

The SSA will begin notifying beneficiaries about their new benefit amounts by mail in early December 2025. As in previous years, beneficiaries will receive a simplified, one-page COLA notice that uses plain language and provides details on their new benefit amount and any deductions.

Beneficiaries with a “my Social Security” account can view their COLA notices online, which is secure, easy, and faster than receiving a letter in the mail. Account holders can also set up text or email alerts for new messages, including COLA notifications. That information should be out in the first or second week of November.

To receive COLA notices online, individuals must create or sign in to their personal “my Social Security” account and opt out of paper notices by November 19, 2025. Create an account at www.ssa.gov/myaccount. In addition to COLA notices, account holders can also access their Social Security card replacement request, claim status, benefits information, and SSA-1099 forms.

Information about Medicare changes for 2026 will be available at www.medicare.gov. For Medicare enrollees, 2026 premium amounts will be available via the “my Social Security” Message Center starting in late November. Those who have not opted for online notices will receive their COLA notices by mail in December.

Aging Advocacy Groups Call New COLA “Inadequate”

According to an AARP survey, conducted in Sept. 2025, even a COLA around 3% was viewed “insufficient to do the job,” says Bryan Miller, AARP Research. Only 22% of Americans age 50-plus agree that “a COLA of right around 3% for Social Security recipients is enough to keep up with rising prices,” while 77% disagree, stated, noting that this sentiment was consistent across political party affiliations, with large majorities of republicans (75%), Independents (82%) and Democrats (79%) expressing disagreement,” noted Miller in a web article published on Oct. 21, 2025.

“Nearly three-quarters (72%) of older Americans selected 5% or higher, with one quarter (25%) indicating that an 8% increase would be necessary to keep pace with rising costs. Responses to this question were consistent across political party affiliations,” adds Miller.

With the SSA’s announcement of the 2026 COLA three days later, aging advocacy groups expressed concern over the adequacy of the increase.

“Over the past year, many older Americans have been financially squeezed, and Social Security is a key to their financial stability,” said AARP Chief Executive Officer Myechia Minter-Jordan. “AARP has fought for Social Security for decades — including efforts to protect the COLA from cuts,” she said.

Nancy Altman, President of Social Security Works, echoed these concerns, noting that the COLA fails to fully address rising costs, especially healthcare. “This year, Medicare Part B premiums are projected to rise by about 11.6 percent, nearly double last year’s increase,” Altman said. “For the average beneficiary, this will consume nearly half of their COLA increase. For some, it will use up the entire COLA increase — all while the costs of other necessities, such as food and housing, continue to climb.”

Altman also pointed out that Social Security beneficiaries who are not yet eligible for Medicare and rely on the Affordable Care Act (ACA) marketplaces for insurance face even steeper challenges. “Next year, ACA premiums are expected to rise sharply, with those over 50 being hit hardest.”

Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), agreed, saying, “The 2.8% COLA will be a disappointment for many seniors struggling to cover their bills. This is the second lowest COLA since 2021 and only a slight increase from this year’s rate.” He added that the COLA doesn’t keep pace with inflation, particularly in areas where prices are rising sharply, such as medical, housing, and grocery costs.

Richtman and NCPSSM have long advocated for a more accurate COLA formula, specifically the Consumer Price Index for the Elderly (CPI-E), which would better reflect the spending patterns of older adults, who tend to allocate more of their income to healthcare and housing. “The CPI-W, which is used to calculate the current COLA, does not accurately capture seniors’ spending habits,” Richtman said.

“The 2026 COLA is going to hurt seniors. Year after year, they warn that Social Security’s meager increases won’t be enough, and the U.S. Census Bureau estimates that about 10 percent of retirement-age Americans live in poverty. However, our research suggests that the number may be higher. It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth,” states TSCL’s Executive Director Shannon Benton.

Richard Fiesta, Executive Director of the Alliance for Retired Americans calls for Congress to make strengthening and expanding social Security national priority. “If billionaires and the wealthiest 1 percent pay their fair share, we can boost benefits for everyone and guarantee the program’s solvency for future generations,” he suggests.

Fixing the COLA Formula

Social Security Works, TSCL, the NCPSSM, Alliance for Retired Americans and AARP are all calling on Congress to adopt the CPI-E to calculate COLAs. The CPI-E more accurately reflects the spending habits of seniors, particularly in categories like healthcare and housing, which are weighted more heavily in the CPI-E. Adopting this index would likely result in higher COLAs for Social Security beneficiaries.

NCPSSM’s Richtman supports several pieces of legislation that would adopt the CPI-E, including bills sponsored by Senators Bernie Sanders and Mazie Hirono, and Representatives John Larson, Val Hoyle, and Jill Tokuda. “This change is long overdue,” he said. “Instead of expecting seniors to scrape by, Congress should act now to help beneficiaries better cope with rising living costs.”

Modest Social Security COLA increase seen as chump change by some

Published in RINewsToday on October 16, 2023

Last week, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million beneficiaries will increase 3.2% in 2024, about $59 per month starting in January. The 2024 payment declined from last year’s 8.7%, but that had been the highest in four decades. And, its higher than the average 2.6% increase recorded over the past 20 years.

The Social Security Act determined how the cost-of-living adjustment (COLA) is calculated. Enacted on August 14, 1935, the Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

More than 66 million Social Security beneficiaries will see that COLA increase 3.2% beginning in January 2024, and increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” observes Kilolo Kijakazi, Acting Commissioner of Social Security in an Oct. 12 statement announcing this year’s COLA increase.

According to SSA, some other adjustments that will also take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Advocacy groups on aging talk turkey about COLA

“The annual COLA is a reminder of Social Security’s unique importance. Unlike private-sector pension plans, whose benefits erode over time, Social Security is designed to keep up with rising prices, noted Nancy Altman, President of the Washington, DC-based Social Security Works (SSW), in response to SSA’s COLA announcement.

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” said Jo Ann Jenkins, AARP chief executive. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” she added, stressing that Social Security has been the foundation for financial security for hundreds of millions of retirees. “SSA’s COLA announcement shows that it’s continuing to deliver on this promise,” she says.

However, Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare charges, “While we are grateful that Social Security is the only major retirement program with a built-in cost-of-living adjustment, the current formula for determining COLAs is inherently flawed. SSA’s current COLA formula doesn’t truly reflect the increase in prices for the goods and services that beneficiaries rely on.”

According to Richtman, the 3.2% 2024 COLA only represents a modest $59 increase in the average monthly benefit for retired workers, and that’s before deducting the projected increase in the 2024 Medicare Part B premium of about $10 per month. Because of this the average retirement beneficiary will receive a net COLA of about $50.

Richtman notes, “That is not enough for a tank of gas or half a week’s worth of groceries in many states. The net COLA will barely cover one brand-name prescription co-pay for some patients.”

Last year, Richtman noted that the COLA of 8.7% was unusually high, the highest in some 40 years. But post-pandemic inflation was also at record highs, he said, noting that historically, COLA’s have been relatively low. In fact, the COLA has been ZERO; three times since 2009.

“Seniors deserve an accurate COLA formula that accounts for the impact of inflation on their living costs. That is supposed to be the entire purpose of a COLA. The current formula measures the impact of inflation on urban wage earners and clerical workers. How is that a reasonable formula for seniors? Seniors have different spending patterns than urban wage earners & clerical workers,” asks Richtman.

Richtman notes that seniors spend more than other age group on expenses like housing, long-term care, and medical services. “We strongly favor the adoption of the CPI-E (Consumer Price for the Elderly) for calculating COLAs. The CPI-E would more accurately reflect the impact of inflation on the goods and services seniors need, he believes.

The CPI-E is included in both major pieces of legislation to expand and protect Social Security that have been introduced in this Congress: Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act. We have endorsed both of those bills as part of our commitment to boosting Social Security for current and future retirees. It’s past time for Congress to act,” says Richtman.

Although the 3.2% COLA is well above the 2.6% average over the past 20 years, a newly released retirement survey released on Oct. 12, 2023, by The Senior Citizens League (TSCL) indicates that seniors are pessimistic about their financial well-being in the upcoming months and very concerned about growing calls on Capitol Hill for Social Security cuts. Sixty-eight percent of survey participants report that their household expenses remain at least 10 percent higher than one year ago, although the overall inflation rate has slowed. This situation has persisted over the past 12 months.

According to TSCL’s latest retirement survey, worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56 percent of survey respondents. Social Security benefit cuts are an even bigger concern, ranked as the number one worry by nearly 6 out of 10 survey participants, or 59%. Over the past year, benefit cuts and trims have affected a large percentage of older Americans low-income households, individuals who can least afford them.

A year ago, TSCL warned that higher incomes due to the 5.9% and 8.7% COLAs in 2022 and 2023 could potentially affect eligibility for low-income assistance programs such as SNAP and rental assistance. Earlier this year, federal emergency COVID assistance for SNAP (food stamps) and Medicaid also ended. Surveys conducted in 2022 and this year suggest that significant numbers of lower-income older households have lost access to some safety net programs over the past 12 months, the survey finds.

A Final Note…

Social Security plans to start notifying beneficiaries about their new COLA amount by mail starting in early December. Individuals who have a personal “my Social Security account” can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice—instead of waiting for them in my Social Security.

People will need to have a “my Social Security account” by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

For details about SSA’s 2024 Changes, go to: https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.

Herb Weiss

Aging Issues

Tag Archives for Supplemental Security Income