Several proposals would change how retirees receive inflation protection. The article outlines what those changes could cost recipients.
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- Social Security Beneficiaries Are Getting an Above-Average COLA in 2027. Here's the Downside.
All Social Security beneficiaries will get a 3.6% increase in benefits starting in January, thanks to the 2027 cost-of-living adjustment (COLA) announced on October 14. The boost is slightly larger than recent estimates and above the 50-year average. However, the large COLA will significantly raise Social Security's costs, adding roughly $75 per month for the average recipient, or about $900 a year. The program has paid out more than it takes in since 2021, relying on trust funds to cover the gap, and the June 2026 Trustees Report projects those funds will be depleted by the fourth quarter of 2032, which could trigger a 23% benefit cut without government action. The 2027 COLA could accelerate that deadline, though the size of the effect won't be known until the next Trustees Report. The article expects the government to act, possibly by raising payroll taxes or the full retirement age, and says Americans can only budget carefully and stretch their savings for now.
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- Social Security Administration announces 3.6% cost-of-living adjustment for 2027
The Social Security Administration said the 2027 cost-of-living adjustment (COLA) will be 3.6%, raising retirement benefits by about $75 per month on average. The increase covers 76 million Americans, with around 72 million seeing it in January, and about 7.3 million SSI beneficiaries receiving higher payments starting Dec. 31. The 3.6% figure matches experts' projections of 3.5% to 3.6% and is the largest increase since 2023, when benefits rose 8.7%. The announcement came as new government data showed consumer prices accelerating, with the CPI up 3.7% over the past 12 months as gas prices jumped.
- Social Security’s 2027 COLA Is 3.6%. If This Happens, the Next Raise Could Be Even Bigger
The Social Security Administration set a 3.6% cost-of-living adjustment (COLA) for 2027, up from 2.8% in 2026. The article argues that large COLAs reflect surging inflation, so a bigger 2028 COLA could mean sharply higher prices in 2027 that strain seniors’ budgets. It suggests moderate COLAs may be easier on retirees and that other retirement income, such as stocks with a long history of beating inflation, can help more than Social Security adjustments alone.
- Inflation for Urban Wage Earners Hit 3.9% in September. Here's What That Means for Social Security and Your Portfolio.
According to the BLS report released Oct. 14, the CPI-W for September rose 3.9% from a year earlier, above the 3.7% headline CPI. The CPI-W is used to calculate the annual cost-of-living adjustment (COLA) for Social Security. Averaging the July (3.4%), August (3.5%) and September (3.9%) readings gives a 3.6% COLA for 2027, or about $75 a month ($902 a year) for the average retired worker, who currently receives about $2,088 a month. The article argues that this inflation, while higher than many would like, is well below the extremes of 2022 or the late 1970s to early 1980s, and need not necessarily prompt big changes to stock holdings.
- Inflation for Urban Wage Earners Hit 3.9% in September. Here's What That Means for Social Security and Your Portfolio.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 3.9% year over year in September, according to the BLS report released October 14, above the overall CPI rate of 3.7%. The CPI-W sets the annual cost-of-living adjustment (COLA) for Social Security, and the 2027 COLA is projected at 3.6%, the average of the July (3.4%), August (3.5%) and September (3.9%) readings. For the average retired worker receiving about $2,088 a month in 2026, that works out to roughly $75 more per month, or $902 per year. The article argues current inflation remains well below the extreme levels of 2022 and the late 1970s to early 1980s.
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