The New Year is closer than many Texans may realize. It could bring a major change to Social Security’s payment amounts as the administration irons out its cost-of-living (COLA) adjustment for 2027.<\/p>\n
Here’s what those in the Lone Star State need to know.<\/p>\n
The Social Security Administration (SSA) determines<\/a> the COLA by comparing the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September of the previous year, when a COLA was determined, to the same third-quarter period of the current year. If there is no increase, there will be no COLA, according to the SSA.<\/p>\n COLA affects the amount of money included in Social Security benefits and Supplemental Security Income (SSI) payments. The main purpose is to ensure that recipients can still afford a similar number of products and services, even when prices rise, according to the administration’s website<\/a>.<\/p>\n \u201cSocial Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today\u2019s economic realities and continue to provide a foundation of security,\u201d Social Security Administration Commissioner Frank J. Bisignano said in a blog post<\/a>. \u201cThe cost-of-living adjustment is a vital part of how Social Security delivers on its mission.\u201d<\/p>\n A forecast from the AARP<\/a>, a nonpartisan organization serving Americans ages 50 and up, alongside their families, states that the 2027 COLA will be roughly 3.6%, which would add approximately $75 to the monthly income of retired workers. The nonprofit used projections from the Federal Bureau of Labor Statistics and the Federal Reserve to determine the increase.<\/p>\n Meanwhile, a forecast from the Senior Citizens League<\/a>, which provides a COLA watch on its website, lists the predicted COLA at 3.8%, which would amount to $77 more per month. This number is based on the SSA’s most recent statistical snapshot<\/a>, issued in July 2026 (see the average monthly benefit in the retirement benefits category).<\/p>\n This can be compared to the prediction by independent Social Security and Medicare analyst Mary Johnson of a 3.7% COLA, issued in July via The Motley Fool website<\/a>.<\/p>\n It is $5,181, according to the SSA’s website<\/a>.<\/p>\n The SSA has said<\/a> it will make an official announcement regarding the 2027 COLA in October. Historically, it goes into effect in January of the following year after the announcement, the AARP<\/a> states.<\/p>\n