Social Security COLA Forecast Falls. It Could Be Good News for Retirees
Summary
Social Security beneficiaries in the U.S. may receive a smaller cost-of-living increase for 2027 than first expected. The forecasted raise dropped to about 3.5-3.6%, reflecting slower price increases in the economy.Key Facts
- The Senior Citizens League now estimates a 3.6% Social Security raise for 2027, down from 3.8%.
- This raise would increase the average monthly benefit by about $70, from $1,937.53 to $2,007.28.
- AARP also lowered its 2027 raise estimate to 3.5% from 3.6%.
- The raise depends on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
- July inflation was 3.4% higher than a year ago, a key factor for the upcoming COLA calculation.
- Inflation numbers from July, August, and September will decide the final increase announced in October.
- Slower inflation can mean smaller benefit increases but also signals easing price pressures in daily expenses.
- About 68.5 million people currently receive Social Security retirement, survivor, or spousal benefits in the U.S.
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