Social Security Switches to a Retiree-Focused Inflation Measure in 2027

Starting December 2027, Social Security will adjust annual benefits using CPI-E instead of CPI-W—a shift that weights healthcare and shelter more heavily, since retirees spend more on these. CPI-E historically rises 0.2 to 0.3 percentage points faster per year. Over a 28-year retirement, that gap compounds into meaningfully higher lifetime payouts. Pension plans need updating now.