Social Security recipients will see rise in monthly payments next year
Data: Social Security Administration; Chart: Neil Irwin/Axios Social Security recipients will see the largest rise in their monthly payments in four years in January, with a 3.6% cost-of-living adjustment. Driving the news: The Social Security Administration announced the 2027 COLA adjustment for 76 million recipients of retirement and disability benefits, which by law is calculated based on the…
In January, Social Security recipients will experience the largest increase in their monthly payments in four years, as the government announces a 3.6% cost-of-living adjustment (COLA). This rise will benefit the 76 million individuals who receive retirement and disability benefits, raising the average benefits by $900 per year, or $75 per month.
The Social Security Administration calculates the adjustment based on the Consumer Price Index for the July-through-September quarter, which was released this morning. The COLA will increase the income of seniors and disability recipients by $75 a month, providing a mild fiscal stimulus. However, the adjustment also brings attention to the looming fiscal problems of the Social Security system, as the trust fund is projected to run out in six years.
The trustees' most recent projections assumed a 0.9 percentage point lower COLA for 2027, highlighting the importance of addressing the program's long-term financial stability.
Written by urgent.news from Axios's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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