economy
Social Security 2027 cost-of-living adjustment estimate rises with gas prices
New government data shows the pace of inflation has increased, pushing up one estimate for the Social Security cost-of-living adjustment for 2027.
TL;DR
- The estimated Social Security cost-of-living adjustment (COLA) for 2027 may increase to 3.2% due to rising inflation and gasoline prices.
- This new estimate is higher than a previous forecast of 1.7%, based on recent Consumer Price Index data showing a nearly two-year high in inflation.
- The COLA is intended to adjust benefits for inflation, but many beneficiaries feel it does not adequately reflect their real-life cost increases.
- A large majority of Americans aged 50 and over surveyed by AARP believe a 3% COLA is not enough to keep pace with rising prices.
- The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the current year compared to the previous year.