economy
Social Security COLA for 2027 may jump to 4.7%, one estimate finds. This chart shows prices driving the increase
As inflation climbs, Social Security beneficiaries may see a higher cost-of-living adjustment in 2027. Here's which costs spiked most over the past 12 months.
TL;DR
- Consumer prices rose in May, pushing the annual inflation rate to its highest in three years.
- An independent estimate suggests a 4.7% Social Security cost-of-living adjustment (COLA) for 2027, potentially higher due to rising gasoline prices.
- Key inflation drivers over the past 12 months include fuel oil (64.1%), gasoline (40.7%), and airfare (25%).
- While a previous COLA increased average benefits by $56, analysts state beneficiaries need a $94 monthly increase to keep pace with inflation.
- AARP survey indicates 69% of adults 50 and over worry prices are rising faster than their income, and 61% find the average $2,000 monthly Social Security payment insufficient.