Social Security 2027 COLA Outlook Firms After 172,000 May Jobs as Inflation Risks Stay Elevated
Updated
Updated · 24/7 Wall St. · Jun 5
Social Security 2027 COLA Outlook Firms After 172,000 May Jobs as Inflation Risks Stay Elevated
3 articles · Updated · 24/7 Wall St. · Jun 5
Summary
172,000 jobs added in May strengthened the case that Social Security beneficiaries could receive a larger 2027 cost-of-living adjustment than this year’s 2.8% increase.
A stronger labor market can keep consumer spending firm, which may sustain inflation instead of cooling it quickly even if the Federal Reserve delays rate cuts.
Iran-related energy price spikes are a second key driver, with higher fuel costs already eroding the value of the 2026 COLA and potentially lifting the inflation readings used for next year’s adjustment.
Third-quarter inflation data from July through September will determine the 2027 COLA, so current estimates remain provisional.
A bigger COLA would mainly signal that seniors are facing higher prices at gas stations, grocery stores and elsewhere, not necessarily gaining purchasing power.