Retired couple reviewing a benefits letter at a kitchen table, with the headline The 2027 Social Security COLA: What the 3.6% Raise Really Means for Your Paycheck

Every fall, millions of retirees look forward to an announcement that can affect their household budgets for the year ahead: Social Security’s annual cost-of-living adjustment, commonly known as the COLA. The adjustment is designed to help benefits keep pace with inflation, but the percentage increase announced in the headlines does