Gas Price Surges May Inflate 2027 Social Security Raises Beyond 2026 Levels

Social Security recipients may receive a benefit increase in 2027 that exceeds the 2.8% cost-of-living adjustment (COLA) received at the start of 2026. This potential raise stems from a surge in gas and fuel prices following the Iran conflict. Because Social Security COLAs are tied directly to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), higher fuel costs drive up the index and the resulting adjustment. Retirees typically spend less on gas than workers do. Recipients may receive a larger benefit increase without paying the full cost of the commodity driving the raise.