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Social Security recipients may get bigger benefit boost in 2027
Fox Business • • business
Key Points:
- Social Security beneficiaries are projected to receive a 3.4% to 3.6% cost-of-living adjustment (COLA) in 2027, higher than the 2.8% increase for 2026, based on recent inflation data from July and August and estimates for September.
- The COLA is calculated using the Bureau of Labor Statistics' CPI-W inflation data for July through September, with August showing a 3.5% increase year-over-year in the CPI-W.
- Organizations like the Committee for a Responsible Federal Budget, AARP, and The Senior Citizens League have provided estimates ranging from 3.4% to 3.6%, with AARP emphasizing the importance of early projections for seniors who rely heavily on Social Security income.
- Despite the projected increase, experts caution that the CPI-W may not fully reflect the inflation experience of older Americans, whose spending patterns differ from urban wage earners, potentially leading to continued financial challenges.
- The final 2027 COLA will be determined after September inflation data is released, with current forecasts expressing confidence in a mid-3% adjustment barring unexpected economic changes.
