Grocery prices were flat from August to September, but were up 1.8% year over year in September, down from 2.1% in August and 2.6% in July, and about 22% higher than five years ago. The 2027 COLA of 3.6%, or about $75 a month, is larger than grocery inflation, but seniors still face faster increases in gasoline, utilities, housing and transportation. The article notes that the COLA weights housing, the largest household expense, and that benefits are adjusted only after prices have risen, sometimes up to 12 months earlier. Retirees may have covered higher costs in the meantime, possibly by borrowing at today's rates, making the adjustment 'a bit too little, and too late.'
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Original headline: Grocery Prices Rose 1 . 8 % in September . Here How That Compares With Social Security 2027 Cost - of - Living Adjustment ( COLA ).
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- Grocery Prices Rose 1.8% in September. Here's How That Compares With Social Security's 2027 Cost-of-Living Adjustment (COLA).
According to the Bureau of Labor Statistics, at-home food prices were flat from August to September but were up 1.8% year over year, down from 2.1% in August and 2.6% in July. Grocery prices are about 22% higher than five years ago. The Social Security Administration announced benefits will rise 3.6% next year, an average increase of about $75 per month. The article says this adjustment more than offsets food price increases but trails housing and transportation costs. Because adjustments take effect only after prices rise, beneficiaries may have covered extra expenses for up to 12 months.
- Social Security 2027 Cost - of - Living Adjustment ( COLA ) Is 3 . 6 %. Here How That Compares With Today Best High - Yield Savings Rates .
Social Security's 2027 cost-of-living adjustment (COLA) is 3.6%, raising the typical retiree's monthly benefit of just over $2,033 by about $75 starting in January, the biggest COLA since 2022's 8.7%. The article suggests this may still not cover retirees' costs, since the CPI-E, which tracks Americans aged 62 and up, often shows higher healthcare expenses than the CPI-W used for the COLA. It suggests beneficiaries park these payments in flexible, liquid accounts that still earn a decent yield, such as brokerage money market funds or online savings accounts. Examples cited include SoFi at 4.2%, Go2bank up to 4.5% on up to $5,000, and Axos ONE up to 5% for six months for new customers. Online savings money may take at least a day to become spendable cash.
- Social Security's 2027 Cost-of-Living Adjustment (COLA) Is 3.6%. Here's How That Compares With Today's Best High-Yield Savings Rates.
Social Security benefits will rise 3.6% starting in early 2027 to offset inflation over the past 12 months, adding about $75 to the typical retiree's monthly benefit of just over $2,033. This is the largest adjustment since 2022's 8.7%. The article argues that the CPI-E, which tracks Americans aged 62 and up, often shows higher healthcare costs than the CPI-W used for COLA, so recipients should place payments in accounts that are both liquid and higher-yielding, such as money market funds or online savings accounts. Examples cited include SoFi at 4.2%, E*TRADE from Morgan Stanley at a similar rate, Go2bank at up to 4.5% on up to $5,000, and Axos ONE at up to 5% for six months for new customers. The trade-off is that online savings may take at least a day to become spendable cash.
- Social Security 2027 Cost-of-Living Adjustment (COLA) Is 3.6%. Here's How That Compares With Today's Best High-Yield Savings Rates
Social Security benefits will rise 3.6% beginning in January 2027, lifting the typical retiree's monthly benefit of just over $2,033 by about $75. That is the largest cost-of-living adjustment since 2022's 8.7%, although the article notes the COLA is based on CPI-W, which may not fully reflect the higher healthcare costs tracked by CPI-E for Americans aged 62 and up. Because beneficiaries will want their payments to stay liquid yet earn a decent yield, the article compares options: SoFi Technologies pays 4.2% on its savings account, in line with E*TRADE from Morgan Stanley, while Go2bank offers up to 4.5% on balances of up to $5,000 and Axos ONE offers up to 5% for six months for new customers. It also cautions that online savings money may take at least a one-day turnaround to become spendable cash, though transfers between accounts can often be done online in a day, and readers should check the fine print.
- September Inflation Came In at 3 . 9 %, Helping to Set Social Security 2027 Cost - of - Living Adjustment ( COLA )
The CPI-W rose 3.9% in September from a year earlier, its second-largest annual increase this year after May’s 4.4%, which sets the basis for Social Security’s 3.6% cost-of-living adjustment (COLA) for 2027, the fifth largest in 35 years. Social Security uses the CPI-W rather than the CPI-U, which rose 3.7%, because it focuses on hourly wage earners and clerical workers, who make up about 30% of the U.S. population. Energy prices surged amid the Middle East conflict and the closure of the Strait of Hormuz, with gasoline up 34.2% and fuel oil up 74.2% year over year. The COLA is based on the third-quarter CPI-W average, which was 3.62% higher than in 2025, and will take effect in January. The adjustment likely won’t fully offset current inflation pressures.
- September Inflation Came In at 3 . 9 %, Helping to Set Social Security 2027 Cost - of - Living Adjustment ( COLA )
Social Security's 2027 cost-of-living adjustment (COLA) is 3.6%, 0.8% higher than this year's, and will raise monthly benefits beginning in January. The COLA is calculated from CPI-W, which rose 3.9% from a year earlier in September, compared with 3.7% for the headline CPI-U. Energy prices drove the increase: in September, energy costs rose 20.4% year over year, gasoline 34.2%, and fuel oil 74.2%, amid the Middle East conflict and the closure of the Strait of Hormuz. CPI-W had eased to 3.4% in July and 3.5% in August before accelerating again, and the COLA is based on the third-quarter average compared with the prior year. The article notes that the adjustment will not fully offset the inflation recipients are facing.
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