Social Security beneficiaries saw record-high COLAs in 2022 and 2023, when the annual increases climbed to 5.9% and 8.7%<\/a>, respectively. Yet as the pace of inflation subsided, the size of the annual COLA increase has also come down<\/a>. <\/p>\n The 2026 cost-of-living adjustment<\/a> was 2.8%. That added about $56 per month<\/a> on average for retirees, and for some beneficiaries, higher Medicare premiums offset that increase<\/a>.<\/p>\n Now, new government inflation data<\/a> for January suggests the cost-of-living adjustment for 2027 may be even lower, if the pace of inflation stays the same in the coming months.<\/p>\n Read more CNBC personal finance coverageEarly estimates point to lower Social Security COLA for 2027<\/a>Senators call for longer Social Security Fairness Act lump-sum payment timeline<\/a>Here’s the inflation breakdown for January 2026 \u2014 in one chart<\/a>Average tax refund is up 22%, Bessent says \u2014 what filers can expect this season<\/a>K-shaped economy looks like ‘jaws of a crocodile,’ economist says: Here’s why<\/a>How EPA ‘endangerment finding’ repeal could impact your wallet<\/a>Medical emergencies can lead to debt and bankruptcy \u2014 even for insured Americans<\/a>Bigger tax refunds may be coming \u2014 but missing key forms could risk an audit<\/a>How Social Security Fairness Act payments may affect beneficiaries’ taxes<\/a>Credit card debt tops $1.28 trillion, consistent with ‘K-shaped’ economy: NY Fed<\/a>How affordability led to a chasm between stock prices, consumer optimism<\/a>Student loan complaints at record high, CFPB finds, but agency omits details<\/a>Following Super Bowl ad, Trump accounts launch a new sign-up option<\/a>Some student loan borrowers wait over a year for public servant debt forgiveness<\/a>Trump’s ‘big beautiful bill’ may spur the rise of ‘un-college,’ experts say<\/a>First the quarter zip, now a ‘401(k) mullet’ \u2014 what trends say about the economy<\/a>CNBC’s Financial Advisor 100: Best financial advisors, top firms ranked<\/a><\/p>\n The 2026 COLA affects around 75 million beneficiaries, according to the Social Security Administration.<\/p>\n Estimates range from 1.2% to 3.1%<\/p>\n The Social Security cost-of-living adjustment may be just 1.2% in 2027, estimates Mary Johnson, an independent Social Security and Medicare analyst. If that increase were to go into effect, it would be the lowest COLA since a 0.3% increase to benefits in 2017.<\/p>\n Separately, the Senior Citizens League, a nonpartisan senior group, now projects a 2.8%<\/a> Social Security COLA for 2027, consistent with the benefit boost beneficiaries saw for this year. <\/p>\n Meanwhile, the Congressional Budget Office has forecast<\/a> a 3.1% Social Security COLA for next year, followed by 2.5% the following year, as part of its estimates on the program’s future costs.<\/p>\n Low COLA would ‘exacerbate’ financial stress<\/p>\n If the COLA landed at 2.8%, “this paltry figure would only exacerbate seniors’ financial stress,” the Senior Citizens League states. The group’s polling has found more than half of seniors \u2014 almost 58% \u2014 have skipped at least one health care product or service in the past 12 months to cut costs.<\/p>\n
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