Retirees set for cash boost as Social Security COLA to spike in 2027

Key Points:

• The average Social Security check, currently about $2,071, may increase by an estimated 3.8% in the next Cost of Living Adjustment (COLA), potentially raising payments by around $78 to $2,149.
• The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and aims to help retirees keep pace with inflation, particularly amid high gas, grocery, and energy prices.
• The Social Security 2100 Act, recently reintroduced in Congress, proposes further benefit increases, a higher minimum benefit tied to 125% of the Federal poverty line, and switching COLA calculations to the Consumer Price Index for the Elderly (CPI-E), which better reflects senior expenses.
• The bill also seeks to extend Social Security’s solvency by raising payroll taxes on incomes above $400,000, but experts, including The Senior Citizens League, believe its passage in the current Congress is unlikely.
• Advocates highlight the bill’s potential to reduce senior poverty and homelessness by improving benefits, though they acknowledge that additional comprehensive measures may be needed.