Social Security recipients could get a nearly 4% cost-of-living adjustment, forecasters say
CBS News • • business
Key Points:
- Social Security recipients may receive a 2027 cost-of-living adjustment (COLA) of about 3.9%, driven by rising inflation, according to the Senior Citizens League.
- This increase would add approximately $80.77 to the average monthly benefit, raising it from $2,071 to around $2,152.
- The COLA is based on inflation from July to September, so if prices rise sharply outside this period, seniors could still face financial challenges despite the adjustment.
- Rising fuel prices and inflation linked to energy costs are expected to have broader economic impacts, potentially increasing inflation further and affecting seniors' purchasing power.
- A higher COLA could worsen Social Security's funding shortfall by an estimated $300 billion over the next decade and accelerate the insolvency of the old-age trust fund by about three months.