A 2027 Social Security COLA Rise May Not Help Retirees
Summary
Millions of Americans who receive Social Security benefits may get a bigger cost-of-living increase (COLA) in 2027 because of rising prices. However, a report says even higher payments might not fully make up for the loss in what retirees can buy compared to ten years ago.Key Facts
- Social Security beneficiaries get a yearly COLA to help benefits keep up with inflation.
- Over 70 million Americans depend on Social Security retirement, disability, or survivor benefits.
- The 2027 COLA could be between 3.9% and 4.2%, higher than the 2.8% increase in 2026.
- Inflation is rising due to higher energy, housing, and food costs.
- Inflation is measured by the CPI-W, which is used to calculate COLAs.
- Despite COLA increases, retirees have lost about 13.7% of their buying power since 2016.
- Benefits would need to go up about 15.8%, or $295.85 per month, to match 2016 buying power.
- A report suggests changing how COLAs are calculated to better reflect seniors’ actual expenses.
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