A 3.8% Social Security COLA for 2027 could raise average benefits by $73.62, but the larger adjustment may accelerate trust fund insolvency.
Laura Ingraham: This is what the American people wantTrump reveals how he feels about personal threats from Iran as US launches second wave of strikes in one dayGet back to the basics, stay diversified: Oppenheimer managing directorReport warns of fiscal doomsday as Medicare and Social Security face $193T shortfallbeneficiaries are expected to see a larger cost-of-living adjustment in 2027 amid persistently high inflation this year, a new report finds.
An analysis by The Senior Citizens League predicts that the 2027 COLA will be 3.8%, or 1 percentage point higher than the 2026 COLA of 2.8%, based on the latest consumer price index inflation data released on Tuesday. TSCL estimated that if the projected 3.8% COLA took effect today, average benefits would rise by $73.62 from $1,937.53 to $2,011.15.
The estimate of a 3.8% COLA was the same as last month's prediction, and is down slightly from the 3.9% projection made in April.is calculated using the Bureau of Labor Statistics' CPI inflation data for the months of July, August and September. The announcement of the final COLA amount typically occurs in mid-October with the agency's release of September inflation data.
NATIONAL DEBT INTEREST AND ENTITLEMENT SPENDING PUSH FY2026 FEDERAL BUDGET DEFICIT TOWARD $2 TRILLION," said TSCL Executive Director Shannon Benton after the release of the group's June estimate that also projected a 3.8% COLA for 2027.
"We're talking about food, a roof over their head, and transportation. Many seniors already have to skip doctor's appointments due to costs, which costs all of us more in the long run when we swap preventative care for emergency care," she added.latest CPI inflation data showed prices were up 3.5% from a year ago in June, a level that's well above the Federal Reserve's 2% target and creates significant pressure on household budgets as wage gains may not keep up with the rising cost of living.
A larger COLA would also exacerbate the financial issues facing Social Security, which is on a path that would result in the insolvency of a key trust fund that could in turn cause benefit cuts. Social Security's key trust fund is facing depletion in 2032, which would prompt automatic benefit cuts if Congress doesn't act.
The nonpartisan Committee for a Responsible Federal Budget estimated in May that a 3.8% COLA in 2027 would worsen Social Security's fiscal shortfall by about $300 billion over the next decade and advance the insolvency of a key trust fund by three months from late 2032. Once the trust fund is depleted, the Social Security Administration will be required by law to cut benefits to match incoming payroll tax revenues, which CRFB estimates will result in a
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