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Cooling inflation lowers estimate
CNBC • • business
Key Points:
- Experts now estimate the 2027 Social Security cost-of-living adjustment (COLA) to be between 3.7% and 3.8%, a decrease from earlier projections due to cooling inflation and lower energy prices.
- The official 2027 COLA will be announced by the Social Security Administration in October, with past annual COLAs averaging 3.1% over the last decade.
- Medicare Part B premiums are expected to decrease by 3.3% to $209.50 per month in 2027, marking a rare decline compared to the usual annual increase of about 5.4%.
- The Medicare Part D deductible will rise to $700 in 2027, up from $615 in 2026, and the catastrophic out-of-pocket spending limit will increase to $2,400 from $2,100.
- Retirement confidence among retirees has declined to 73%, with major concerns including inflation, healthcare costs, and housing expenses, as revealed by a recent survey of over 1,000 retirees.
