2027 Social Security COLA: Could the Social Security 2100 Act Mean a Bigger Raise?

The Social Security 2100 Act is a proposed law that could increase benefits and change how Social Security cost-of-living adjustments are calculated. In simple terms, the bill is designed to give some retirees a stronger annual increase while raising additional money for the Social Security program.

However, the proposal has not become law. It would need to pass Congress and receive the president’s signature before any changes could take effect.
 

What is the 2027 COLA?

The Social Security COLA is the annual increase designed to help benefits keep pace with inflation. The Social Security Administration currently calculates the adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.

The government compares inflation during July, August and September with the same period from the previous year. That calculation determines the COLA for the following year.

The official 2027 COLA is expected to be announced in October 2026. Until then, any percentage discussed online is only a forecast.
 

What would the bill change?

The Social Security 2100 Act would keep the current CPI-W measure but add the Consumer Price Index for the Elderly, or CPI-E, which is designed to better reflect the spending patterns of people age 62 and older.

CPI-E gives more weight to expenses such as:

• Healthcare.

• Prescription drugs.

• Housing.

• Utilities.

• Other costs that may affect retirees more heavily.

If CPI-E shows higher inflation than CPI-W, the proposal could allow retirees to receive a larger annual increase during the period covered by the bill.
 

Why supporters want a different formula

Supporters argue that the current CPI-W measure is based mainly on the spending habits of working-age households. Retirees may spend their money differently, especially because medical and housing costs often make up a larger part of their budgets.

Using a senior-focused inflation measure could make Social Security increases more closely reflect the expenses older Americans face.

The SSA has examined several possible COLA formulas, including options involving CPI-E. However, the agency has not changed the current formula because of this proposal.
 

What other changes are included?

The bill is about more than the annual COLA. Its proposed changes could include:

The exact details could change because the bill is still being considered by Congress.
 

How much extra could retirees receive?

A small change in the COLA percentage would produce a small monthly increase. For example, a 0.2 percentage-point increase could add approximately:

These examples are not guaranteed payments. The actual amount would depend on the final COLA percentage, the beneficiary’s monthly payment and whether the bill becomes law.

Even a small increase can grow over time because future COLAs are applied to the higher benefit amount.
 

Would the bill change the 2027 COLA?

Not yet. Unless Congress passes the Social Security 2100 Act before the relevant rules take effect, the SSA will continue using the existing CPI-W formula.

The official 2027 COLA will be based on third-quarter inflation data and announced in October 2026. Beneficiaries do not need to apply for the COLA because increases are calculated automatically.
 

What should Social Security recipients do?

Retirees should be careful with websites or messages claiming they can help them “apply” for a larger Social Security increase. No application is required for the regular COLA.

For reliable information, beneficiaries should:

• Check the SSA’s official COLA page.

• Review inflation data from the Bureau of Labor Statistics.

• Follow the bill’s progress on Congress.gov.

• Check payment details through a my Social Security account.

• Treat all 2027 COLA estimates as unofficial until the SSA makes its announcement.
   

Bottom line

The Social Security 2100 Act could make annual benefit increases more closely reflect the costs faced by older Americans. It could also provide broader benefit increases, improve minimum payments and raise additional revenue from some high earners.

But the proposal is not law yet. For now, the 2027 Social Security COLA will continue to be calculated under the current CPI-W formula, with the official increase expected in October 2026.

-

Don't miss out on general benefits information!

Subscribe for the latest updates, expert advice, and valuable tips to help you maximize your benefits and financial well-being.

Stay informed—sign up now!