Millions of retirees are waiting for the official 2027 Social Security cost-of-living adjustment (COLA), which the Social Security Administration (SSA) is expected to announce in October 2026.
At the same time, lawmakers and senior advocacy groups are focusing on the Social Security 2100 Act, a proposal that could increase benefits and change how future COLAs are calculated.
The bill has not become law, so it will not automatically change the 2027 Social Security increase. However, its proposed changes to the inflation formula could lead to larger benefit adjustments in some future years.
What is the Social Security 2100 Act?
The Social Security 2100 Act is a broad reform proposal intended to strengthen the program’s finances and increase benefits for some retirees, disabled workers and low-income beneficiaries.
The proposal has been associated with Representative John Larson, one of its longtime congressional supporters. Its provisions have appeared in different legislative versions, so the details could change if Congress considers a new measure.
The proposal has attracted attention because it would address several major Social Security issues, including:
-
The annual COLA calculation.
-
Minimum benefits for low-income workers.
-
Benefits for current and future retirees.
-
Payroll taxes on higher earners.
-
The long-term finances of the Social Security trust funds.
How is the 2027 COLA calculated?
Under current law, Social Security COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The index is published by the Bureau of Labor Statistics (BLS).
The SSA compares the average CPI-W readings from July, August and September with the same three-month period from the previous year. The percentage increase becomes the COLA for the following year.
Because the 2027 calculation depends on third-quarter inflation data, the final figure will not be known until the government has released the required data. The SSA says the next official COLA will be announced in October 2026.
The latest official COLA was 2.8% for 2026. Early 2027 forecasts vary, with AARP projecting about 3.6% and the Senior Citizens League estimating approximately 3.8%. These are estimates, not final government figures.
Why do supporters want a new inflation measure?
Critics say CPI-W does not fully reflect the spending habits of older Americans. Retirees often spend a greater share of their income on healthcare, prescription drugs, housing and utilities than working-age households.
The Social Security 2100 Act would use the Consumer Price Index for the Elderly (CPI-E), or compare CPI-E with CPI-W and use the measure that produces the larger increase, depending on the version of the proposal.
Supporters argue that CPI-E could provide a more realistic measure of inflation for seniors. The SSA’s analysis of COLA alternatives shows how different inflation indexes could affect future benefit adjustments.
Could the bill increase Social Security benefits?
If approved, the proposal could affect benefits in several ways:
-
Change to the COLA formula: Could produce larger annual increases when senior-focused inflation is higher.
-
Across-the-board benefit increase: Could raise monthly payments for current beneficiaries.
-
Stronger minimum benefit: Could help certain low-income retirees.
-
Caregiver credits: Could improve benefit calculations for people who leave work to provide care.
-
Higher taxes on some high earners: Could generate additional Social Security revenue.
-
Trust-fund reforms: Could improve the program’s long-term financial position.
The exact impact would depend on the final bill approved by Congress. Legislative proposals can be amended substantially before becoming law.
How much larger could a COLA be?
The difference could be relatively small in a single year, but it may compound over time because each COLA is applied to the previous benefit amount.
-
$1,000 monthly benefit: About $2 extra per month.
-
$1,500 monthly benefit: About $3 extra per month.
-
$2,000 monthly benefit: About $4 extra per month.
-
$2,500 monthly benefit: About $5 extra per month.
These figures are examples only. The actual increase would depend on the final inflation data and the formula adopted by Congress.
A higher Social Security COLA may also be partly offset by increases in Medicare Part B premiums, which are commonly deducted from monthly Social Security payments.
Would the bill affect the 2027 COLA?
Not unless Congress passes the legislation before the COLA calculation takes effect. Until a new law is approved, the SSA will continue using the existing CPI-W formula.
The official 2027 COLA is expected in October 2026, and payments reflecting that adjustment would generally begin in January 2027. Beneficiaries can follow updates through the SSA’s official COLA information page.
What should Social Security recipients do?
Beneficiaries do not need to apply for a larger COLA or pay anyone to receive a future increase. If Congress changes the law, the SSA would calculate eligible benefits automatically.
For now, retirees should:
-
Check the SSA website for official announcements.
-
Follow BLS inflation reports used in the COLA calculation.
-
Treat all 2027 COLA projections as estimates.
-
Avoid websites asking for Social Security numbers or bank information to “claim” a higher payment.
-
Use the SSA benefit calculator to review estimated retirement benefits.
Bottom line
The Social Security 2100 Act could give retirees larger annual increases by changing the inflation measure used to calculate COLAs. It also proposes broader benefit and payroll-tax changes aimed at strengthening Social Security.
However, the bill has not passed, and it will not affect the 2027 COLA unless Congress approves it and the president signs it into law. For now, the official 2027 Social Security COLA remains scheduled for announcement in October 2026.
-
You may have access to support you didn’t know about. Find out more here!