The 2027 Social Security COLA Will Boost Average Benefits by $901 Annually. Will It Be Enough? - AOL

The Social Security Administration has set the 2027 cost-of-living adjustment (COLA) at 3.6%, higher than expected heading into 2026. The SSA says average monthly benefits for retired workers in August were about $2,087.52, or roughly $25,050 annually. Applying another 3.6% would add about $901.80 in annual benefits. The article explains the COLA formula: benefits are tied to CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) using the third quarter’s average, compared with the same period a year earlier, and COLAs can’t be negative. It also notes the 3.6% level is the fifth-highest in 35 years, as inflation and purchasing-power concerns persist.