The 2027 cost-of-living adjustment, or COLA, represents the largest increase in four years.
NEED TO KNOW
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The 3.6% cost-of-living adjustment (COLA) will raise typical benefit payments from Social Security by about $75 per month starting in 2027, the Social Security Administration announced on Wednesday, Oct. 14
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Nearly 72 million Social Security beneficiaries will receive the increase, the largest in four years
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Advocates say rising Medicare premiums could offset the increase as retirees face rising costs
Americans who receive Social Security benefit payments will be eligible to receive up to an extra $1,000 a year starting in 2027 amid rising inflation.
The Social Security Administration announced on Wednesday, Oct. 14 that the 2027 cost-of-living-adjustment, or COLA, will increase payments to benefit recipients by 3.6% starting next year. As many as 76 million Social Security recipients are expected to receive the increase, according to a press release issued by the agency.
On average, those who receive Social Security retirement benefits will see their payments increase by $75 per month, the agency said.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability,” Commissioner Frank J. Bisignano said in a statement.
Following the announcement, some advocates shared concerns that the increase wouldn’t make up for the rising cost of living expenses that seniors currently face.
“While a 3.6% COLA is certainly welcome, it wouldn’t necessarily restore the purchasing power seniors have already lost,” Shannon Benton, executive director of the advocacy group Senior Citizens League, told CBS News. “The COLAs are designed to keep pace with inflation, not make up for years of falling behind.”
The COLA increase comes shortly after an AARP survey found that 76% of retirees believed that a 3.5% COLA increase would not be enough to keep up with rising prices.
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The agency said some Social Security recipients should see the new COLA reflected on their paperwork starting on Dec. 31.
Amid the increase in Social Security benefits, Medicare costs remain uncertain and have not been announced for 2027 yet, The New York Times reported. The Part B premium could rise as much as $209.50 per month, Medicare’s board of trustees projected.
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