Social Security's 2027 Cost-of-Living Adjustment (COLA) Is 3.6%. Here's How That Compares With Today's Best High-Yield Savings Rates.

Beginning in January, Social Security recipients will receive a 3.6% increase in their monthly payments, raising the average benefit of over $2,033 to about $75 more. This represents the largest adjustment since 2022's 8.7% increase, following years of below-average inflation. However, this 3.6% raise may not be enough to fully address the rising cost of living, particularly for the elderly who face higher healthcare expenses not fully captured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) used to determine these COLA adjustments.

To maximize their earnings, retirees should consider placing their cash in flexible, high-yield savings accounts offered by online banks. These accounts typically offer better interest rates than traditional brick-and-mortar banks, with examples such as SoFi Technologies' 4.2% yield, E*TRADE's 4.2%, Go2bank's up to 4.5%, and Axos ONE's up to 5% for new customers.

While there may be a one-day processing delay, the additional income generated from these accounts can be valuable for households looking to stretch their Social Security benefits.