Social Security COLA 2027: 3.6% increase adds $75 a month, but retirees say it’s not enough

The Social Security Administration (SSA) is projecting a 3.6% cost-of-living adjustment (COLA) for older adults and people with disabilities in 2027, which will result in an estimated additional $75 per month for beneficiaries. However, many retirees argue that this increase is insufficient to offset the rising costs of food, healthcare, gasoline, and housing.

Nearly 72 million Americans receive monthly Social Security benefits, along with approximately 7.3 million recipients of Supplemental Security Income (SSI). The SSA expects the COLA to provide beneficiaries with "greater financial stability," but advocates like Nancy Altman of Social Security Works argue that it falls short of keeping up with inflation.

For many older Americans on fixed incomes, the projected increase may not make a significant difference, especially considering the expected rise in healthcare and prescription medicine costs. AARP CEO Dr. Myechia Minter-Jordan highlighted the importance of Social Security's cost-of-living adjustment for older Americans, particularly those with no retirement savings.

The COLA announcement also comes as Congress prepares to raise the maximum annual earnings subject to Social Security payroll taxes, potentially impacting future benefits.