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The annual Social Security cost-of-living adjustment (COLA) can make or break the finances of retirees, as it determines how much benefits will increase to keep pace with inflation.
Since COLAs are very important to beneficiaries, advocacy groups make predictions throughout the year, offering insight into how much extra money (if any) Social Security recipients will collect in the coming year.
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Over the course of 2026, the estimates for the 2027 COLA have been all over the place.
At the start of the year, The Senior Citizens League (TSCL), an advocacy group for older Americans, was predicting a 2.5% COLA for 2027 (1) — a smaller raise than the 2.8% COLA awarded for 2026.
Then, economic conditions took an unexpected turn, and inflation ran substantially higher than expected in 2026.
That sudden change is important because the COLA is directly tied to inflation: The rate for the coming year is calculated (2) based on the current year’s third-quarter changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
As inflation remained stubbornly high, TSCL revised its forecast upward throughout the year.
TSCL’s forecast peaked at 3.9% (3) in May, while the most recent estimate — the final one before the official COLA announcement on Oct. 14 — is slightly more conservative, projecting a 3.5% benefit bump (4) in 2027.
This would still be the highest increase since 2023, when benefits rose by 8.7% (5).
For many Americans, these shifts in COLA predictions have largely gone unnoticed. In fact, around three-quarters of adults (74%) expressed interest in learning more about how inflation affects their Social Security benefits, according to a 2025 survey (6) conducted by The Harris Poll on behalf of Nationwide.
Meanwhile, research from the Social Security Administration (SSA) suggests that just over one-quarter (27%) of working-age adults understand how Social Security benefits are calculated (7).
Still, although many Americans may not know the finer points of how COLAs are calculated, most retirees (89%) didn’t believe their benefits were keeping pace with inflation, according to TSCL’s 2026 Senior Survey (8).
That’s a position supported by data analyzed by TSCL, which suggested benefits aren’t actually keeping up with inflation and have instead lost 13.7% of buying power (9) since 2016 alone.
Especially after TSCL’s downward revision in their COLA estimate, some retirees may not feel like sitting around waiting for the news. They might want to take steps to position themselves now for a more secure 2027, no matter what the SSA’s COLA announcement ends up being on Oct. 14.
Here are three ways to fight inflation today.
1. Develop a passive income stream
With inflation seemingly outpacing Social Security benefits, retirees might want to look to additional income sources to help cover rising costs. While distributions from retirement accounts can provide some of this income, having a diversified pool of assets could help you avoid being forced to sell stocks during an economic downturn.
Generating reliable passive income from real estate can be a great way to prepare for a COLA that may not beat inflation. Real estate tends to be an excellent hedge against rising prices, since landlords can generally raise rent as prices increase and land often holds its value well even when markets go sour.
Many retirees don’t want to actively manage properties. However, options exist to reap the benefits of real estate investing without ever having to fix a faucet or help a tenant with lost keys at 3 a.m. — including investing through a real estate investing platform backed by big-name investors like Jeff Bezos.
That platform is Arrived, which allows you to invest in shares of rental homes or vacation properties with as little as $100. All you have to do is sign up, then you can browse a selection of vetted properties, each carefully selected for income generation and potential future appreciation, to find one that feels like a fit.
Choosing a property takes just a few minutes, and once you start investing, you could have a passive income stream to help you cover the shortfall if your Social Security COLA turns out to be a disappointment.
Plus, for a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.
2. Add an inflation hedge to your portfolio
The COLA is projected to be higher in 2027 because inflation has remained elevated in 2026 (10), despite hopes that it would finally cool.
The war in Iran is just one contributing factor, while many experts warn that rising government debt (11) will continue to put upward pressure on prices. Higher prices could be especially problematic for consumers as wage growth slows down (12).
If you want to add an investment to your portfolio that traditionally performs better during economic downturns — and is historically viewed as an excellent hedge against inflation — adding precious metals to your asset mix could be the right approach.
A platform like Goldco makes it easy to add precious metals to your portfolio in a gold IRA, which also lets you take advantage of the tax breaks these accounts offer.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. What’s more, you may be able to roll over your existing 401(k) or IRA into a gold IRA without penalty.
The company is even offering up to 10% of qualified purchases in free silver.
To explore whether precious metals can be a helpful hedge in case inflation continues surging and the COLA can’t keep pace, you can download Goldco’s free gold and silver guide to see if it’s right for you.
3. Get help making a personalized plan
Optimizing your retirement accounts, minimizing taxes and developing a sound investing strategy may be more important than ever with inflation still surging.
That’s why working with a financial advisor can help you make those decisions — and reduce the chance of making costly mistakes.
For instance, if your portfolio balance is $250,000 or higher, WiserAdvisor can connect you with an expert who specializes in strategic planning so you can make the most of the money you have coming in.
Simply answer a few questions about your savings and investment portfolio, and WiserAdvisor will review its network to match you with up to three vetted, reputable advisors who are aligned with your needs.
WiserAdvisor’s matching service is free, and you can schedule no-obligation consultations with your matches to determine who can best help you make the most of your retirement income to build the security you want.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
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Bottom line
Taking these steps now could help you optimize your investments before the COLA announcement, giving you potentially more income and a way to hedge against inflation. That way, even a COLA adjustment that disappoints won’t necessarily be the end of the world.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Seniors League (1), (3), (4), (8), (9); Social Security Administration (2), (5), (7); Nationwide Financial (6); Joint Economic Committee (10); ABC News (11); CNBC (12)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
