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7 Things Veterans and Military Retirees Should Know About 3 . 6 % COLA for 2027

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    Social Security benefit payments will rise 3.6% in January, an adjustment based on the CPI-W index, which the article argues may not fit retirees well. Retirees are considerably older than the average American, spending less on food, housing and transportation but more on healthcare, so the CPI-E index for people aged 62 and over may better reflect their costs. Using CPI-E for 2024 would have produced a 4% raise instead of the 3.2% received, meaning $62 more per month instead of $50. The Senior Citizens League says beneficiaries have lost 13.7% of their buying power since 2016, and most proposed fixes require Congress. The article suggests retirees seek more investment income or higher-yielding savings accounts for idle cash.

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  • Social Security COLA 2027 Hands Retirees a Bigger Cheque, but Medicare and a 2032 Shortfall Could Claw It Back

    The Social Security Administration confirmed a 3.6% cost-of-living adjustment (COLA) for 2027 on 14 October, lifting the average retirement benefit by $75 a month from January. That is the largest annual increase since 2023 and well above the 2.8% granted for 2026. However, the Medicare Part B premium is projected to rise $6.60 to $209.50 a month in 2027, which would absorb close to 9% of the average increase. The OASI trust fund is projected to run out in the fourth quarter of 2032, after which incoming payroll taxes would cover about 78% of scheduled benefits, triggering a roughly 22% cut unless Congress acts. Disabled veterans will only receive the matching increase if Congress passes the annual Veterans' Compensation Cost-of-Living Adjustment Act.

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