The Indicator from Planet Money · Friday, August 14, 2026
Inflation data for July indicates that the cost of living adjustment (COLA) for Social Security benefits could see a significant increase. The CPI-W, used to calculate COLAs, rose 3.4% in July, with projections suggesting a potential 3.6% increase for 2027. This would be the largest adjustment in four years, potentially offering an extra $73 per month for average retired workers.
“We got a lot of letters here, Waylen. I feel like I feel like I need some clarification on the U.”
“Well, the Social Security Administration uses CPIW to calculate its yearly cost of living adjustment. This is a bump and benefits for people who collect Social Security or supplemental security income. The AARP says that for a lot of retirees, this cost of living adjustment is their only source of inflation protected income.”
“So, this week, when we got July inflation numbers, people who track social security release their estimates of what the adjustment might be. We're going to find out the final number in October.”
“The Senior Citizens League, that's projecting a 3.6% increase, which if that holds, will actually be the biggest increase in four years.”