COLA projected at 2.8%, adding pressure on seniors
The cost-of-living adjustment (COLA) for Social Security benefits next year is expected to come in lower than many retirees had hoped, according to a new projection.
Advocacy group The Senior Citizens League (TSCL) said in a recent report that the 2027 COLA is likely to be 2.8%, the same as this year’s increase.
If finalized, the adjustment would raise the average monthly benefit for retired workers from $2,024.77 to $2,081.46, an increase of about $56.69.
TSCL criticized the projected increase as insufficient, noting that many senior households already face financial strain.
“Older households living on Social Security typically earn only about 58% of the income of working-age households,” the group said. “With rising energy prices and persistent cost-of-living pressures, seniors are facing mounting financial challenges.”
Inflation has shown signs of picking up again, driven in part by higher energy costs linked to geopolitical tensions in the Middle East.
The annual COLA is calculated by the Social Security Administration (SSA) based on consumer price index (CPI) data from July through September, with the official adjustment announced each October.
Meanwhile, Social Security continues to face long-term financial pressures due to an aging population and rising enrollment. Current projections show the program’s main trust fund could be depleted by 2032, at which point benefits may be reduced by roughly 24% to align with incoming revenue.
