Senior Citizens League Sees 3.9% 2027 Social Security COLA as Inflation Erodes Buying Power
Updated
Updated · The Motley Fool · May 30
Senior Citizens League Sees 3.9% 2027 Social Security COLA as Inflation Erodes Buying Power
7 articles · Updated · The Motley Fool · May 30
A 3.9% cost-of-living adjustment for Social Security in 2027 is now projected by the Senior Citizens League, up from the 2.8% increase beneficiaries received this past January.
The forecast follows a 3.9% annual rise in the CPI-W last month, with higher fuel and broader consumer prices linked in the report to the Iran conflict and oil-price gains.
A bigger COLA could cushion retirees if Medicare Part B premiums jump again in 2027, leaving more room for beneficiaries to still see a net increase in monthly checks.
The group says larger COLAs do not leave seniors ahead because they mainly track inflation, and the CPI-W understates retiree costs, especially healthcare spending.
That mismatch has helped cut Social Security recipients' buying power by 13.7% over the past decade, underscoring why a higher 2027 COLA would be a mixed blessing.
Social Security's 2027 raise is projected at 3.9%. Why are seniors still falling further behind financially?
A proposed new inflation index could boost Social Security. What is the real cost of this change?
With its trust fund depleting by 2032, can Social Security survive these high inflation-based payouts?