If you are retired, you’ve probably felt the strain on your budget this year as inflation has increased by more than the 2.8% Social Security cost-of-living adjustment (COLA) you got in January. If you don’t have the personal savings to pick up the slack, you may have no choice but to make some uncomfortable choices about your spending priorities.

Looking ahead to the 2027 COLA, there’s good news and bad news. The good news is that it’s on track to exceed the 2026 COLA, based on recent projections. But it might not make as big a difference to your budget as you’d hope.

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What to expect from the 2027 Social Security COLA

We can’t know for certain what 2027’s Social Security COLA will be until October because each year’s adjustment is based on the average inflation rates from July, August, and September of the prior year, and the third quarter of 2026 is just starting. But some analysts are already making predictions based on recent inflation trends.

The latest estimate from The Senior Citizens League (TSCL), a nonpartisan advocacy group, expects the 2027 COLA to land at around 3.8%. This is a full percentage point larger than the 2026 COLA, and it’s quite a bit above average compared to the COLAs we’ve seen over the last 50 years.

But it probably won’t make a significant impact for most retirees. The average monthly benefit as of May 2026 was $2,083. Adding 3.8% to that only gives you about $79 more per month. You may have already seen your monthly expenses rise by more than $79 so far in 2026, and there are still seven months to go before the next COLA takes effect.

Whatever boost next year brings will certainly be better than nothing, but it’s likely that retirees will still have to rely more heavily upon their savings and other sources of income they may have next year to cover their expenses. If you don’t have enough of a nest egg, you may have to explore other options, like taking a part-time job, to make ends meet.

Time to plan ahead

We have a few months until the official announcement, and the actual COLA could come in higher or lower than the 3.8% estimate. But it’s worth noting that even a larger boost isn’t likely to dramatically improve your financial situation. High COLAs occur in response to high inflation, so any extra benefits will go toward covering your already-higher living costs rather than improving your lifestyle.

Once we know what the 2027 COLA will be, you’ll be able to estimate how much it’ll add to your checks next year. If you’re able to, take advantage of the second half of 2026 to build your budget for next year, so you’ll be ready when your 2027 checks start arriving.

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