Older Americans are waiting for the Social Security Administration's 2027 cost-of-living adjustment as inflation trends point to a higher-than-average benefit increase. Estimates suggest the annual adjustment may reach 3.5% to 3.6%, which would mark the biggest rise in three years but may still fall short of covering household and healthcare costs.
Highlights
- Social Security Administration is expected to announce a 2027 COLA increase of 3.5% to 3.6%, exceeding the decade average of 3.1%.
- A 3.5% COLA would raise the average monthly benefit by $67.90, bringing it to approximately $2,008 from $1,940 according to the Senior Citizens League.
- An AARP survey found 76% of adults aged 50 and older believe the projected 3.5% 2027 COLA increase would be inadequate to offset rising living costs.
Projected increase and announcement timing
As reported by CNBC, the Social Security Administration is expected to announce the 2027 COLA on Wednesday alongside new government inflation data. Social Security experts estimate the adjustment may lift benefits by 3.5% to 3.6% next year, above the roughly 3.1% average recorded over the past decade.If the increase reaches 3.5%, the average monthly benefit check would rise by $67.90 to about $2,008 from $1,940, according to the Senior Citizens League. The last larger increase came in 2023, when the COLA reached 8.7% as inflation surged, while beneficiaries received a 2.8% increase in 2026.
Pressure on retirees' everyday budgets
Even with a larger annual adjustment, many recipients say the increase may not be enough to keep up with daily expenses. An AARP survey published Monday found that 76% of adults age 50 and older do not think a projected 3.5% Social Security COLA for 2027 would be sufficient.The poll surveyed 1,023 adults age 50-plus between Sept. 17 and 21 and carried a margin of error of 4.25%. Donna Dalrymple, a 70-year-old retiree in Manchester, New Hampshire, said she would welcome a more generous increase and worries that rising costs, especially for Medicare, may outpace the annual benefit adjustment.
Rising government bond yields in major developed economies are intensifying fiscal pressure and making it harder to stabilise public debt, our earlier coverage noted. We highlighted how higher borrowing costs and large deficits in countries such as the U.S., France and the UK could push debt burdens higher and force tougher budget adjustments.
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