2027 Cost-of-Living Adjustment Projected at 3.4%–3.6%
Experts Say Delaying Until Age 70 Still Maximizes Lifetime Benefits
As projections point to a larger Social Security cost-of-living adjustment (COLA) in 2027, many Americans nearing retirement are wondering whether they should claim benefits now to lock in the increase. Retirement experts, however, say that delaying benefits is still the better financial strategy for most retirees.
According to CNBC, analysts expect the 2027 Social Security COLA to range between 3.4% and 3.6%, up from the 2.8% increase beneficiaries received in 2026. The official adjustment will be announced by the Social Security Administration (SSA) in October, based on third-quarter inflation data.
Although a higher COLA may tempt some workers to begin collecting benefits sooner, financial planners say waiting to claim Social Security generally results in significantly larger lifetime payments.
After reaching Full Retirement Age (FRA), retirees who postpone claiming benefits receive delayed retirement credits of about 8% per year until age 70. Because annual COLAs are applied to the larger benefit amount, delaying retirement not only increases the monthly benefit but also boosts the dollar value of every future COLA.
“Social Security is one of the most valuable tools retirees have to protect themselves against the risk of living a long life,” said James Mahaney, a certified financial planner with Mavericus Retirement Services. “People shouldn’t rush to claim benefits simply because the next COLA may be higher.”
Mahaney compared two hypothetical retirees with the same earnings history. A worker eligible for a $3,000 monthly benefit at Full Retirement Age would receive about $2,250 per month if benefits begin at age 62. Waiting until age 70 would increase that monthly payment to approximately $3,960 before future COLAs are applied.
When annual COLAs are factored in, the advantage becomes even greater. In Mahaney’s analysis, the retiree who delayed claiming until age 70 ultimately saw monthly benefits rise to $5,091, significantly higher than the early claimant.
Years with unusually large COLAs further widen the gap.
For example, the 8.7% COLA implemented in 2023 increased monthly benefits by approximately $225 for someone who claimed at age 62. A retiree who delayed until age 70 received an increase of about $395 per month—a difference of $170 every month, or $2,040 annually.
Experts note that the additional income is permanent because each year’s COLA compounds on a larger benefit base, allowing the gap between early and delayed claimants to continue growing over time.
That said, delaying benefits is not the right choice for everyone. Individuals with serious health conditions, shorter life expectancies or immediate income needs may benefit from claiming earlier. Financial planners also recommend that married couples carefully coordinate their claiming strategies, as delaying benefits for the higher-earning spouse can increase future survivor benefits.
Rather than making decisions based solely on next year’s projected COLA, experts advise retirees to evaluate their overall financial situation, health and life expectancy before filing for Social Security.
“The best approach is not to act out of fear,” Mahaney said. “Review your situation each year and determine whether delaying benefits continues to make financial sense.”
