2027 Social Security COLA

Today the Social Security Administration announced the Cost of Living Adjustment for next year, posting the following:

The Social Security Administration (SSA) has officially announced a 3.6% Cost-of-Living Adjustment (COLA) for 2027, increasing monthly Social Security benefits for millions of Americans beginning in January.

With this adjustment, the average monthly benefit for retired workers is expected to increase from $2,095 to $2,170, an increase of $75 per month.

Along with the COLA, SSA has announced updates to several other key Social Security figures, including maximum taxable earnings, retirement earnings test limits, and other important threshold.

Meanwhile, CNN reports “many older Americans say the annual adjustments, known as COLAs, haven’t been enough to cover their ever-rising expense. … Social Security benefits have lost 13.7% of their buying power over the past decade, according to a recent analysis by The Senior Citizens League, an advocacy group. Put another way, a dollar of benefits in 2016 is only worth 86 cents today.” An advocacy group cited in the CNN article says the measure used to calculate the COLA is designed to reflect costs for working Americans, not retirees. “Older Americans spend a larger share of their income on healthcare, housing and other necessities.”