Social Security recipients to get 3.6% cost of living boost, an average of $75 per month

WASHINGTON (AP) — The Social Security Administration projected Wednesday that the annual cost-of-living adjustment for older adults and people with disabilities will go up by 3.6% beginning in 2027, with some recipients complaining that is not enough to offset soaring prices.The adjustment translates to $75 extra per month for the nearly 72 million people who receive monthly Social Security benefits and about 7.3 million beneficiaries who get Supplemental Security Income.The announcement comes as inflation adds pressure on household budgets and businesses and as midterm elections are weeks away.The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary. That is set to increase to $192,300 in 2027, from $184,500 in 2026.The agency's commissioner, Frank Bisignano, said in a statement that the adjustment will give recipients “greater financial stability.”Older adults feel the bite of rising costsSome older adults feel the increase is a drop in the bucket as inflation has eaten away at monthly savings. The government reported Wednesday that inflation accelerated in September, with the consumer price index rising 3.7% in September compared with a year ago and gas prices have spiked in the wake of renewed fighting between the United States and Iran.Nancy Altman, president of the Social Security Works advocacy group, said the latest inflation data shows that “as important as the Social Security COLA is, it is not keeping up with prices.”Lorrie Ufkin, a 71-year-old retiree who lives outside Rochester, Minnesota, said the COLA will not put a dent in her healthcare costs, which are set to increase after the Trump administration concludes at year's end a temporary Medicare Part D subsidy program that has helped offset premiums.

Ufkin said that her premiums and drug cost are expected to rise, although the Centers for Medicare & Medicaid Services has projected a modest increase for most people.The COLA “doesn’t even meet what they’re going to do for changes to Medicare,” she told The Associated Press.She said one of the medications both she and her husband take will go from $11 per month for each prescription, to $200 per month, after Republican administration changes made to older Americans' healthcare programs. She said that was “catastrophic.”Se… The government reported last month that inflation accelerated in August as gas prices spiked in the wake of renewed fighting between the United States and Iran.Lorrie Ufkin, a 71-year-old retiree who lives outside Rochester, Minnesota, said the COLA will not put a dent in her healthcare costs, which are set to increase after the Trump administration concludes at year's end a temporary Medicare Part D subsidy program that has helped offset premiums.

She said that was “catastrophic.”Senior advocacy groups say the COLA is a strong reminder of the financial straits of many older people.“There’s a lot on the line financially right now for older Americans — one in five have no retirement savings, and more people feel financially insecure this year than last.