The Social Security Cost-of-Living Adjustment (COLA) for 2027 is expected to be 3.8 percent, up from this year’s COLA of 2.8 percent, The Senior Citizens League said in a June 10 statement.
COLA is an automatic annual change made to Social Security benefits to keep payments in line with changes in inflation. Currently, monthly Social Security payments amount to $2,026.41 per month for the average retiree. With the 3.8 percent increase, next year’s payments are projected to be $2,103.41, according to the organization.
While the average benefit is expected to rise by $77 per month next year, this would not be enough for older adults to cover their monthly expenses, the league said, highlighting that the average cost of living for an older adult is around $2,700 per month. As such, next year’s projected Social Security payments represent a shortfall of roughly $600….