economy
Social Security COLA for 2027 may be higher as inflation rises, new estimates find
As the pace of inflation increases, that may lead to a higher Social Security cost-of-living adjustment for 2027, according to new expert estimates.
TL;DR
- New forecasts suggest a higher Social Security cost-of-living adjustment (COLA) for 2027 due to rising inflation.
- Mary Johnson's forecast increased to 4.2% from 3.2%, citing rising gasoline, energy, and fresh produce prices.
- The Senior Citizens League now estimates a 3.9% COLA, up from 2.8%.
- Consumer prices have increased, with specific goods like home heating oil, tomatoes, gasoline, coffee, and fresh vegetables seeing price jumps.
- Social Security benefits have lost 13.7% of their buying power since 2016, according to the Senior Citizens League.
- The official COLA calculation depends on third-quarter Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data, with the announcement typically in October.
- The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 3.9% over the past 12 months as of April.