Inflation came in much higher than The Senior Citizens League projected at the beginning of the year. In January 2026, TSCL's model predicted that the 2027 COLA would come in at 2.8%. However, inflation rose as fuel prices spiked at the outset of the Iran war.
The Social Security Administration (SSA) announced last month a 3.6% benefit increase for 2027. Social Security benefits include Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI). On average, Social Security retirement benefits will increase by $75 per month.
Nearly 72 million Social Security beneficiaries will see the cost-of-living adjustment (COLA) beginning in January 2027. Increased payments to about 7.3 million people receiving SSI will begin on December 31, 2026. (Note: Some people receive both Social Security benefits and SSI).
"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," said Commissioner Frank J. Bisignano in a press statement.
However, The Senior Citizens League, a nonpartisan senior group, critiqued the increase as too little, too late.
The group issued a media release on the same day as the Social Security announcement. It said the 2027 COLA will be too low. Seniors tell TSCL that they don't feel like COLAs reflect inflation as they experience it. In the group's 2026 Senior Survey, 89% of respondents said they felt the last COLA was too low and their benefits would fall behind inflation.
The group also said the 2027 COLA will come too late. Social Security beneficiaries won't see any changes to their benefit checks due to the COLA until Jan. 1, but the inflation the cost-of-living increase is supposed to account for already took place in 2026. The group noted that a lot of the inflation happened in the first half of 2026, with escalating military conflict between the United States and Iran, leading to the closure or partial closure of the Strait of Hormuz, which is throttling the world's maritime oil trade, sending oil and gas higher. The statement from the Senior Citizens League said the decision to put the COLA increase in checks beginning in January 2027 means "seniors have to endure elevated prices for months without any financial recourse."
"When inflation spikes due to a geopolitical event like the Iran war, seniors pay the price. Prices go up today, but benefits stay the same for months due to an outdated COLA methodology," said the league's executive director Shannon Benton in the media release. "Working people can request a raise or seek a higher-paying position, but seniors have to make lifestyle cuts or drain their savings until the next COLA."
Individuals with personal my Social Security accounts can view their COLA notice online starting in late November-up to three weeks earlier than receiving a paper notice in the mail. Account holders can also choose to receive text or email alerts when a new message, including their COLA notice, is available in their personal my Social Security account's Message Center. Individuals who do not have a personal account will need to create one and enroll in paperless notices by November 18 to see their COLA notice online. Create an account today at www.ssa.gov/myaccount.
Individuals who have not enrolled in paperless notices in my Social Security will receive their COLA notice by mail in December.
