2027 Social Security Cost-of-Living Adjustment Expected to Be Above Average but Insufficient
The Social Security Administration is expected to announce a cost-of-living adjustment (COLA) for 2027 on Wednesday, with projections indicating an increase of between 3.5% and 3.6%. This would be the largest raise in three years and above the decade-long average of about 3.1%, but many older Americans believe it will still fall short of covering rising living costs. According to a recent AARP survey, 76% of adults aged 50 or older do not think this projected increase is enough. Retirees like Donna Dalrymple in New Hampshire are particularly concerned about outpacing Medicare and other expenses that may rise faster than Social Security benefits. The last significant COLA was an 8.7% boost in 2023 due to high inflation. The final announcement could vary slightly from the current estimates, as it will include additional data on recent inflation trends. If inflation remains elevated, the increase might reach up to 3.6%, but if it slows down, it may settle at around 3.4%. A 3.5% COLA would raise average monthly benefits by $67.90.
Topics: affordability crisis cost of living adjustment (COLA) inflation Social Security
Part of the story Social Security Announces a 3.6% COLA for 2027 (5 articles)