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Social Security's 2027 COLA is the biggest since 2023. How it affects your payments.
Yahoo • • business
Key Points:
- Social Security and SSI benefits will increase by 3.6% in 2027, the largest adjustment since 2023, resulting in an average monthly rise of $75 for over 72 million beneficiaries.
- The cost-of-living adjustment (COLA) is based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), affecting Social Security payments and Medicare Part B premiums, which are projected to increase by $6.60 monthly.
- Advocacy groups criticize the COLA for not fully reflecting retirees' spending, particularly on healthcare and housing, and suggest using the Consumer Price Index for the Elderly (CPI-E) to better capture seniors' costs.
- Beneficiaries will automatically receive the increased payments starting December 31, 2026, for SSI and January 1, 2027, for most Social Security recipients, with detailed notices available online or by mail in late 2026.
- Despite the increase, many seniors feel the adjustment is insufficient to keep pace with rising living expenses, especially given projected healthcare cost growth.
