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The COLA wars are coming for Social Security

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  • September Inflation Came In at 3 . 9 %, Helping to Set Social Security 2027 Cost - of - Living Adjustment ( COLA )

    The CPI-W rose 3.9% in September from a year earlier, its second-largest annual increase this year after May’s 4.4%, which sets the basis for Social Security’s 3.6% cost-of-living adjustment (COLA) for 2027, the fifth largest in 35 years. Social Security uses the CPI-W rather than the CPI-U, which rose 3.7%, because it focuses on hourly wage earners and clerical workers, who make up about 30% of the U.S. population. Energy prices surged amid the Middle East conflict and the closure of the Strait of Hormuz, with gasoline up 34.2% and fuel oil up 74.2% year over year. The COLA is based on the third-quarter CPI-W average, which was 3.62% higher than in 2025, and will take effect in January. The adjustment likely won’t fully offset current inflation pressures.

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  • September Inflation Came In at 3 . 9 %, Helping to Set Social Security 2027 Cost - of - Living Adjustment ( COLA )

    Social Security's 2027 cost-of-living adjustment (COLA) is 3.6%, 0.8% higher than this year's, and will raise monthly benefits beginning in January. The COLA is calculated from CPI-W, which rose 3.9% from a year earlier in September, compared with 3.7% for the headline CPI-U. Energy prices drove the increase: in September, energy costs rose 20.4% year over year, gasoline 34.2%, and fuel oil 74.2%, amid the Middle East conflict and the closure of the Strait of Hormuz. CPI-W had eased to 3.4% in July and 3.5% in August before accelerating again, and the COLA is based on the third-quarter average compared with the prior year. The article notes that the adjustment will not fully offset the inflation recipients are facing.

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  • September Inflation Came In at 3.9%, Helping to Set Social Security's 2027 Cost-of-Living Adjustment (COLA)

    Social Security recipients will receive a 3.6% increase in monthly benefits starting next year, 0.8% higher than this year's COLA. The adjustment is based on the CPI-W, which rose 3.9% year over year in September, and the Q3 average was 3.62% above the previous year's average, rounded to 3.6%. The increase largely reflects energy price spikes tied to the Middle East conflict and the closure of the Strait of Hormuz, with gasoline up 34.2% and fuel oil up 74.2% year over year in September. Inflation cooled in July and August before accelerating again in September. The article notes the COLA likely won't fully offset current inflation, but it lets recipients plan their 2027 budgets.

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  • Grocery Prices Rose 1.8% in September. Here's How That Compares With Social Security's 2027 Cost-of-Living Adjustment (COLA).

    Grocery prices were flat from August to September, but were up 1.8% year over year in September, down from 2.1% in August and 2.6% in July, and about 22% higher than five years ago. The 2027 COLA of 3.6%, or about $75 a month, is larger than grocery inflation, but seniors still face faster increases in gasoline, utilities, housing and transportation. The article notes that the COLA weights housing, the largest household expense, and that benefits are adjusted only after prices have risen, sometimes up to 12 months earlier. Retirees may have covered higher costs in the meantime, possibly by borrowing at today's rates, making the adjustment 'a bit too little, and too late.'

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  • Grocery Prices Rose 1.8% in September. Here's How That Compares With Social Security's 2027 Cost-of-Living Adjustment (COLA).

    According to the Bureau of Labor Statistics, at-home food prices were flat from August to September but were up 1.8% year over year, down from 2.1% in August and 2.6% in July. Grocery prices are about 22% higher than five years ago. The Social Security Administration announced benefits will rise 3.6% next year, an average increase of about $75 per month. The article says this adjustment more than offsets food price increases but trails housing and transportation costs. Because adjustments take effect only after prices rise, beneficiaries may have covered extra expenses for up to 12 months.

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  • Social Security 2027 Cost-of-Living Adjustment (COLA) Is 3.6%. Here's How That Compares With Today's Best High-Yield Savings Rates

    Social Security benefits will rise 3.6% beginning in January 2027, lifting the typical retiree's monthly benefit of just over $2,033 by about $75. That is the largest cost-of-living adjustment since 2022's 8.7%, although the article notes the COLA is based on CPI-W, which may not fully reflect the higher healthcare costs tracked by CPI-E for Americans aged 62 and up. Because beneficiaries will want their payments to stay liquid yet earn a decent yield, the article compares options: SoFi Technologies pays 4.2% on its savings account, in line with E*TRADE from Morgan Stanley, while Go2bank offers up to 4.5% on balances of up to $5,000 and Axos ONE offers up to 5% for six months for new customers. It also cautions that online savings money may take at least a one-day turnaround to become spendable cash, though transfers between accounts can often be done online in a day, and readers should check the fine print.

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