Social Security cost-of-living adjustment for 2027 may be above average. Some say it's not enough
The Social Security Administration is expected to announce the cost-of-living adjustment for 2027. Projections point to a higher-than-average increase.
TL;DR
- Experts project a 3.5% to 3.6% Social Security cost-of-living adjustment (COLA) for 2027, potentially the largest in three years.
- AARP survey shows 76% of adults 50+ believe a 3.5% COLA will not be enough to cover costs.
- Average Social Security COLAs have been around 3.1% over the past decade.
- The last significant COLA was 8.7% in 2023 due to high inflation.
- A 3.5% COLA could increase the average monthly benefit by approximately $67.90.
- Rising Medicare Part B premiums are projected to increase from $202.90 in 2026 to $209.50 in 2027.
- The Trump administration announced a one-time $90 payment to some Medicare Part B enrollees to help with premium costs.
- Some beneficiaries worry that increased Medicare costs will offset the COLA, exacerbating affordability issues.