NewzThe Social Security Administration projects a 3.6% cost-of-living adjustment for older adults and people with disabilities starting in 2027 The announcement comes as inflation adds pressure on household budgets and businesses and as midterm elections are weeks away. 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…
The adjustment translates to $75 extra per month for the 73 million people who receive monthly Social Security benefits and nearly 7.5 million beneficiaries who get Supplemental Security Income. 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 costs Some older adults feel the increase is a drop in the bucket as inflation has eaten away at monthly savings. 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.
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.” 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. Millions of Social Security recipients will now know how much their checks will be in 2027 after new government data was released on Friday.The Social Security Administration announced that Social Security recipients will get a 3.6% bump in checks in 2027, which represents a $75 increase for the average retiree.The announcement following the release of the monthly Consumer Price Index report.
The Social Security Administration bases its cost-of-living adjustment on the Consumer Price Index for Urban Wage Earners and Clerical Workers, which the Bureau of Labor Statistics releases monthly.The consumer price index weighs the costs of goods based on their importance. Items like food, shelter and energy typically carry heavier weight.RELATED STORY | US inflation climbs as gas, clothing, and airfares get more expensiveSocial Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability, said Commissioner Frank J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."Last years cost-of-living adjustment was 2.8%, which closely matched the 2.9% increase in consumer goods and services.
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