Persistent inflation in August could lead to a higher cost-of-living adjustment for Social Security beneficiaries in 2027, an updated projection from AARP shows. Based on Wednesday’s Consumer Price Index report, AARP now projects the 2027 COLA at 3.6%, up from its prior month’s estimate of 3.5%. Meanwhile, the Senior Citizens League forecasts a slightly lower adjustment of 3.5%, down from its earlier prediction of 3.6%. A 3.6% increase would mark the largest annual bump in Social Security payments since 2023. Over 70 million recipients depend on the annual adjustment to help benefits track with inflation, though critics argue the metric falls short of covering specific cost pressures like healthcare. Shannon Benton, executive director of the Senior Citizens League, noted that seniors spend differently than the active workforce, meaning inflation impacts them uniquely. With the average retired worker’s benefit at $2,071 a month as of January, a 3.6% increase would add about $75, lifting the average to approximately $2,146 monthly by early 2027. The official announcement from the Social Security Administration will arrive next month, following the release of September inflation data on October 14. August consumer prices rose 3.4% year-over-year, coming in slightly above economist expectations due to rising fuel costs. Additional concerns remain as energy prices continue to climb, which could drive up expenses for goods transported nationwide. Experts emphasize that many seniors feel annual adjustments fail to match ongoing inflation, noting that the 2026 COLA was set at 2.8% while monthly inflation surpassed that level for most of the year.
Source: cbsnews.com
