As costs of daily goods and services rise, Social Security recipients could see a slight bump to mitigate the impact on their wallets.
According to CNBC, the cost-of-living adjustment (COLA) could increase in 2027 due to rising fuel prices. Mary Johnson, a Social Security and Medicare policy analyst, told the outlet that her predictions are based on March’s consumer price index data, which show that inflation has climbed to its highest level in nearly two years. Johnson said inflation increased largely due to the war in Iran.
It’s not uncommon for Social Security and Supplemental Security Income beneficiaries to receive a cost-of-living adjustment each year. Having a COLA ensures that rising costs don’t impact the purchasing power of their benefits.
The Senior Citizens League, a nonpartisan senior advocacy group, estimates that COLA could increase by 2.8% in 2027 based on inflation data.
“The average benefits check for retired workers would increase by $56.69, from $2,024.77 to $2,081.46,” the organization noted.
As BLACK ENTERPRISE previously reported, an estimated 75 million Social Security and Supplemental Security Income recipients received a 2.8% cost-of-living adjustment earlier this year. Most beneficiaries received an additional $56 per month. The last increase came as two-thirds of Americans (67%) reported living paycheck to paycheck, according to PNC’s Financial Wellness in the Workplace Report.
According to a report from eMarketer, the biggest hurdle is that wages are simply not keeping up with the cost of living.
Concerns With Social Security Increase
Social Security faces challenges. According to the Senior Citizens League, Social Security faces a potential 24% cut in benefits in 2032 unless Congress intervenes to address lagging finances.
There’s currently a new proposal from the Committee for a Responsible Federal Budget to cap beneficiaries’ payments at $50,000 per year or $100,000 per couple. The proposal would close about three-fifths of the program’s projected shortfall over the next 75 years, the organization states.
Seniors, however, are likely to resist this plan because it will result in a cut for some Americans. TSCL’s research
finds that 95% of seniors oppose benefits cuts for current retirees, while 66% oppose cuts for future retirees.RELATED CONTENT: Auto-Registration For Military Draft Goes In Effect December 2026 For Eligible Men