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Social Security 2027 COLA estimate is shrinking as inflation cools. Here's what to know.
CBS News • • business
Key Points:
- New estimates from the Senior Citizens League and AARP suggest the 2027 Social Security cost-of-living adjustment (COLA) will be slightly lower than earlier forecasts, now projected at around 3.5% to 3.6%.
- The updated projections reflect easing inflation, with the July Consumer Price Index showing a slowdown to 3.4% annual inflation from 3.5% in June.
- Despite the downward revision, a 3.5% to 3.6% COLA increase would still be the largest Social Security benefit adjustment since 2023.
- The average retired worker currently receives $2,071 monthly, so a 3.6% COLA would raise benefits by about $75 to approximately $2,146 starting in 2027.
- The official 2027 COLA will be announced on October 14, after September inflation data is released, and the adjustment is based on inflation from July through September.
