Social Security COLA 2027: Latest projection estimates 4% cost-of-living adjustment
Social Security recipients could receive a higher cost-of-living adjustment for 2027 than initially expected, according to the latest projection from the Senior Citizens League.
The latest cost-of-living adjustment (COLA) projection for 2027 is 3.9%, which is due to a rapidly rising inflation rate that has persisted for three years, CBS News reported.
“This is up quite a bit from earlier in the year, when our projection generally sat between 2% and 3%,” Alex Moore, the statistician for the Senior Citizens League, told CBS News.
A 3.9% increase would raise the average Social Security benefit to $2,152, an increase of about $80.77.
The 2027 COLA initially was projected to remain flat at 2.8%, the same as it was in 2026.
If the rate were to stay the same, the average benefit check for retirees would rise from $2,024 to $2,081, a $57 increase.
The COLA is meant to help Social Security benefits keep up with inflation, but the calculation that will apply for 2027 is based on inflation from July through September.
What are the problems facing Social Security that could affect your payments?
Social Security is also facing a serious funding shortfall that will cause it to run out of money a year sooner than projected.
READ MORE: “Social Security benefit cuts could be coming — and there’s an actual date attached”
The Congressional Budget Office initially projected, as of last year, that Social Security would run out of money in 2033.
Now, Social Security is expected to run out of money in 2032.
READ MORE: “What really happens to your Social Security check if the money runs out”
Beneficiaries shouldn’t have to worry about completely losing their benefits if this happens, but their benefits may be reduced to keep the Social Security system solvent.