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Social Security COLA 2027 set at 3.6% amid ongoing inflation rise
Fox Business • • business
Key Points:
- The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, increasing beneficiaries' monthly checks by an average of $75 starting in January.
- The COLA is based on inflation data from the third quarter of the previous year, reflecting ongoing inflation pressures that impact retirees' budgets.
- AARP officials emphasize the importance of COLA for retirees, especially older individuals who rely heavily on Social Security as their primary source of inflation-adjusted income.
- The 2027 COLA is the largest since 2023, following smaller increases in recent years as inflation moderated, highlighting Social Security’s role in protecting beneficiaries from rising costs.
- With declining pension coverage, Social Security and private savings have become the main pillars of retirement income, making COLA adjustments crucial for nearly half of Americans who depend on Social Security for most of their income.
