Business · Economy · 4 hrs ago
Social Security’s 2027 cost-of-living increase forecast at 3.5%
The Social Security Administration is set to announce the 2027 cost-of-living adjustment on Oct.
14, after September inflation figures are released.
The increase is meant to help benefits keep pace with rising prices.
The Senior Citizens League forecasts a 3.5% increase, matching another analyst’s estimate, but the final figure could change.
If that forecast is correct, the average retired person’s monthly benefit would rise by about $68, from $1,940.08 to $2,007.98.
The adjustment is calculated using changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
That measure may not reflect how older people spend money, so rising prices can affect their budgets differently.
Recipients are expected to receive notices with their new benefit amounts in December.
The Senior Citizens League forecasts that Social Security benefits will rise by 3.5% in 2027.
The Social Security Administration is due to announce the official cost-of-living adjustment on Oct. 14, after September inflation data is released.
The forecast is down from TSCL’s previous estimate of 3.6% and matches a projection by analyst Mary Johnson.
If the estimate holds, the average retiree’s monthly benefit would increase by $67.90, from $1,940.08 to $2,007.98.
TSCL says seniors may still be disappointed because the CPI-W used to calculate the adjustment may not reflect older Americans’ spending.
- Who
- Social Security beneficiaries, including retirees, could receive the increase.
- What
- TSCL forecasts a 3.5% cost-of-living adjustment for 2027.
- When
- The official adjustment is due to be announced Wednesday, Oct. 14, after September inflation data is released.
- Where
- United States.
- Why
- The adjustment is intended to help Social Security benefits keep up with inflation.
This story does not have two clearly opposing sides.
TSCL forecast a 3.6% adjustment for 2027.
Yahoo Finance reported TSCL’s latest forecast of a 3.5% adjustment.
The Social Security Administration is due to announce the official adjustment after the September inflation data is released.
Beneficiaries are due to receive notices detailing their new benefit amounts.
- 2027 COLA forecast
- 3.5%
- Previous TSCL forecast
- 3.6%
- Average retiree monthly benefit before forecast increase
- $1,940.08
- Estimated average monthly increase
- $67.90
- Estimated average retiree monthly benefit after increase
- $2,007.98
What people are saying
The biggest thing we're watching with the COLA announcement coming are short-term shocks to the economy that push inflation way up or down in the next 30 days
No matter if the COLA announcement comes in slightly higher or slightly lower than our prediction, seniors will probably end up disappointed in the long run
Sources
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