Social Security COLA for 2027 expected to jump as inflation rises, estimate shows
Key takeaways
- The TSCL model predicts that the Cost of Living Adjustment (COLA) will be 3.9 percent next year, up from an earlier, meager projection that it would remain at 2.8 percent.
- The annual COLA updates are meant to protect the purchasing power of Social Security beneficiaries when it comes to staple necessities such as food, housing and medicine.
- This makes the national affordability conversation even more important than ever.
Why this matters: political developments that affect policy direction and public trust.
The TSCL model predicts that the Cost of Living Adjustment (COLA) will be 3.9 percent next year, up from an earlier, meager projection that it would remain at 2.8 percent.
The annual COLA updates are meant to protect the purchasing power of Social Security beneficiaries when it comes to staple necessities such as food, housing and medicine. Increases vary and are meant to track inflation data.
For retirees living on fixed incomes, the costs that matter most, especially healthcare, housing, utilities, and insurance, continue to rise faster than prices in the rest of the economy, silently wrenching seniors dry, Executive Director Shannon Benton said in a statement. This makes the national affordability conversation even more important than ever.