Roughly 55 million people receiving Social Security retirement benefits will get a 3.6% increase starting in 2027, one of the larger COLAs in 30 years. At the August average monthly benefit of $2,087, that works out to about $75 more per month. The COLA is based on the CPI-W, comparing this year's average to last year's, and the 2026 adjustment was 2.8%. The article notes the raise reflects high inflation and that past COLAs have not fully kept pace, as $100 in 2016 buys about $86.30 worth of goods today. The author does not expect Congress to pass a one-time adjustment, given the program's deficit.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related news
- 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.
- The Social Security Administration Has Spoken : Here the 2027 Cost - of - Living Adjustment ( COLA ) -- and What It Will Do to Your Benefit
The Social Security Administration announced on October 14 a 3.6% cost-of-living adjustment (COLA) for 2027, the highest since the 8.7% increase in 2022 and tied for the fifth-largest in the past 35 years. The average recipient will get about $75 more per month ($900 a year), against an average monthly retirement benefit of $2,088 as of August. The article argues the increase may not fully offset inflation for seniors, since COLAs use the CPI-W rather than the CPI-E, which weighs healthcare more heavily. A projected rise in the Part B Medicare premium from $202.90 to $209.50 ($6.60 more) will eat into the gain. It warns that without action, the shrinking trust fund surplus could cut benefits by about 22%, to roughly 78% of what is due, wiping out any COLA gains.
- Wednesday's Inflation Report Will Lock In Social Security's 2027 Cost-of-Living Adjustment (COLA). Here's the Number to Watch.
The U.S. Bureau of Labor Statistics' CPI report, due Wednesday, Oct. 14, will determine the 2027 Social Security Cost-of-Living Adjustment (COLA). The COLA is based on CPI-W, a subset covering urban wage earners and clerical workers, roughly 30% of the population; CPI-W rose 3.4% in July and 3.5% in August 2026, so if the report aligns, the 2027 COLA is likely to be about 3.5%. The Committee for a Responsible Federal Budget projects 3.4%, while AARP projects 3.6%. At 3.5%, the average retired worker's benefit of about $2,088 a month (August 2026) would rise to about $2,161, an increase of $73.08 per month or $876.96 per year. The article argues that CPI-W may not fully capture higher retiree costs such as healthcare, and that Social Security was never designed to be a retiree's only income.
- Grocery Prices Rose 1.8% in September. Here's How That Compares With Social Security's 2027 Cost-of-Living Adjustment (COLA).
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.'
- 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.
- 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.
Related markets
Latest news
- CoreWeave Dropped 20% Last Week. Is It Time to Panic or Buy?
CoreWeave shares fell more than 20% as of Oct. 16, driven mainly by concerns over debt and spending. The company carries about $35 billion in total debt against $5.5 billion in cash, with net interest payments reaching $640 million in the second quarter alone, unsecured bond yields approaching 15%, and an S&P rating of B+. Capital expenditure was just over $16 billion in the first half of 2026 and could reach $39 billion for the year, roughly triple its $12.4 to $13.2 billion revenue guidance. States are also weighing restrictions on data centers. On the positive side, second-quarter revenue rose 112% year over year and the backlog exceeded $104 billion. The author has reservations and sees the drop as an opportunity only for the most risk-tolerant investors, who might build a position slowly, while the company needs to prove it can convert its backlog efficiently and manage debt.
- Apple’s iPhone Duo Sold Out In Minutes. The Last Time Apple Reinvented The Phone, One Apple Supplier’s Stock Soared About 1,200% In A Decade
Apple's first foldable iPhone, the iPhone Duo, sold out within minutes of its worldwide preorders opening on Oct. 16, but buyers who ordered more than an hour later face a delay of nearly three months, according to Korea JoongAng Daily, which puts the U.S. starting price at $1,999. One unnamed supply-chain source said Foxconn's final-assembly yield was just above 60% heading into late September, against the 90%-plus rate Apple typically expects, and the hinge, which holds more than 100 parts, is cited as a constraint. Analyst Jeff Pu cut his 2026 shipment estimate from 7 million to 6 million, while reported forecasts range from about 6 million to 10 million units. The article also recalls that Skyworks Solutions, identified as the power-amplifier supplier of the original iPhone, rose about 1,200% over a decade, though those figures cover price only.
- Why Sandisk Stock Shot Higher Today
Sandisk shares jumped as much as 8.3% and were still up 7.9% at 11:24 a.m. ET, helped by a tech rebound and positive news in high-bandwidth memory (HBM). Nvidia has developed NVHBM, a custom HBM die with 15% lower power consumption and 30% higher bandwidth that links NVLink and HBM chips. A Seoul Economic Daily report says Nvidia asked Samsung Electronics to use TSMC's 3-nanometer process to make NVHBM dies, the first such collaboration between the two. Nvidia has also approached Micron and SK Hynix to standardize the process, which could free compute-die space for up to 30% additional compute. The article argues this suggests AI adoption still has room to grow, which would also benefit memory suppliers, and notes Sandisk trades at 19 times earnings and 6 times forward earnings.
- JPMorgan Picks Ethereum for JPM Coin, Citing the Network’s Liquidity and Client Use
JPMorgan is launching JPM Coin, its dollar deposit token, on Ethereum and will offer it to institutional clients there, as announced Monday and reported by Bloomberg. Emma Landriault, global head of Kinexys Labs, said Ethereum's liquidity and the fact that the bank's clients already use it drove the choice. The token targets large crypto firms that pay onchain and financial institutions active in tokenized assets, which can use it as onchain cash to settle trades or as collateral. JPM Coin debuted last year on Base, and it lets clients move dollars in seconds at any hour, whereas a transfer can otherwise take several days. JPMorgan's private Kinexys network already handles daily volume above $7 billion, the bank's payments arm handles around $12 trillion in daily payments, and Open Standard launched its OUSD stablecoin on Ethereum, Solana, Base and Tempo last month.
- Prediction : Amazon Next Chapter Could Be Its Most Important One Yet
24/7 Wall St. sets a price target of $332.67 for Amazon (AMZN), 30.4% above the current $255.20, and rates the stock a buy with 70% confidence. The thesis rests on AWS, which grew 37% last quarter, its fastest pace in 18 quarters, while Amazon plans to spend about $200B in 2026 on AI infrastructure, chips, robotics and satellites. The article flags risks: trailing free cash flow turned negative at about -$7.6B after second-quarter capex rose 68.44%, and long-term debt climbed to $119.1B from $65.6B. It compares Amazon's valuation with Microsoft and Alphabet, and says the author would stay constructive if AWS growth stays above 30% and free cash flow turns positive in 2027.
- Explainer - What behind Egypt move towards possible military involvement in Saudi - Yemen conflict ?
Egypt's parliament is expected to vote next week on authorising its armed forces to help defend Saudi Arabia against Houthi attacks from Yemen, if Riyadh requests support. President Abdel Fattah al-Sisi made the request in a Saturday speech, a clear escalation from Cairo's measured tone since the Iran war began, though Egypt has not publicly committed to a direct combat role. Egypt relies heavily on Gulf states for remittances, aid and deposits, including a $5.3 billion Saudi deposit at Egypt's central bank due this month. Analysts say security concerns, including a July drone strike on two gas vessels at Damietta and shared interest in Red Sea shipping, are pushing Cairo toward a more active stance. Egypt receives about $1.3 billion a year in US military aid and previously sent air and naval forces to the Saudi-led coalition in Yemen in 2015.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.