Social Security's 2027 COLA is announced Oct. 14: what to expect

If you or someone in your family gets Social Security, the date to watch this month is October 14. That is when the 2027 cost-of-living adjustment, or COLA, will be announced, according to Yahoo Finance. The increase starts with payments in January 2027.

The COLA follows a set formula. The Social Security Administration averages a price index called the CPI-W, the Consumer Price Index for Urban Wage Earners and Clerical Workers, over July, August and September, then compares it with the same three months a year earlier. The percentage change becomes the raise.

With two of those three months of data already out, early estimates are fairly close together. The Senior Citizens League projects 3.5%, and AARP projects 3.6%. The September price data will settle the final number.

To estimate your own increase, multiply your current monthly benefit by the expected percentage. At 3.5%, a $2,000 benefit would rise by about $70, to roughly $2,070. Social Security rounds benefits down to the nearest dollar, so the real figure may be a few cents lower than your math.

If you help an older relative with their budget, this is a good week to write down their current benefit amount so you can compare it with the new figure when Social Security sends its notice.