Retirees get a Social Security raise in most years based on inflation.

Retirees will get some important news this week regarding inflation that could affect their COLAs.

Seniors need to be aware of the economic news and understand what it means for the 2027 raise.

A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

If you are collecting Social Security benefits, you should watch the news on Wednesday, March 18, 2026. That's because important information is coming that day that could affect your Cost of Living Adjustment (COLA) for 2027.

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

COLAs are increases in benefits that the Social Security Administration generally provides in most years. They can have a major impact on the finances of retirees by adjusting the size of their monthly Social Security payment.

Here's what's happening on Wednesday that could affect the amount of your Social Security checks in 2027.

The news coming on Wednesday is an announcement from the Federal Reserve regarding whether interest rates will change. The Federal Open Market Committee (FOMC) sets interest rates eight times each year with the goal of controlling the money supply to help keep inflation stable and foster a productive labor market.

The Fed's decision on interest rates doesn't directly impact the Cost of Living Adjustment.  COLAs are calculated not based on interest costs, but instead based on a measure of inflation that evaluates year-over-year price increases in a basket of goods and services included in a consumer price index.

However, the Fed's decision on rates can indirectly impact the Social Security COLA because it can affect the economy. When the Fed lowers interest rates and makes money cheaper, this can drive up demand and give the economy a boost. If the Fed raises rates, this makes the money supply tighter and can reduce demand. This decision can affect pricing trends, which is why the Fed tends to be careful about lowering rates when inflation is high.

It's also worth paying attention to what the Fed does because the FOMC looks at critical economic data when making decisions about rates. If the Fed thinks high inflation is going to persist, then it may keep rates steady or increase them. And since COLAs are directly impacted by rates of inflation, it's helpful for seniors to understand what the experts think will happen with inflation rates.

The Fed will both make an announcement on its rate decision and likely include an accompanying statement on Wednesday, so retirees can watch for this news and begin making preliminary plans for what their retirement benefits are going to look like next year.

While retirees may want a benefits increase, the reality is that a smaller COLA is typically better for their overall finances. When the COLA is pretty low, that's because inflation is fairly low. And low inflation means that retirees don't need to worry as much about prices going up on the products they buy. The money they have in savings won't lose ground due to above-average price increases, and it will be easier for seniors to maintain their standard of living.

Currently, the Senior Citizens League is projecting a 2.8% Cost of Living Adjustment for 2027, although some experts have more conservative projections. The official numbers will not become available until the third quarter CPI data is published, but retirees should already have a good idea by then of what the numbers are likely to look like, so they'll be able to adjust their budgets and financial planning accordingly.

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

And no, it’s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It’s much more straightforward (and powerful) than any of that. Frankly, it’s shocking more people don’t adopt the habit given how easy it is.