Social Security recipients will benefit from a 3.6% cost-of-living adjustment (COLA) in 2027, increasing retirement benefits by an average of $75 per month as millions of Americans continue to face rising costs.
Nearly 72 million Social Security beneficiaries will see higher payments starting in January 2027, while about 7.3 million Supplemental Security Income (SSI) beneficiaries will receive higher payments starting Dec. 31, 2026, according to the Social Security Administration.
“Social Security will implement this cost-of-living adjustment for 76 million Americans, providing them with greater financial stability,” SSA Commissioner Frank J Bisignano said Wednesday.
Consumer prices rose at an annual rate of 3.7% in September, up from 3.4% in August, according to the Bureau of Labor Statistics. Inflation rose to its highest level since its three-year peak of 4.2% in May. Gasoline prices are up 34% from last year, accounting for more than half of the overall price increase and largely due to the U.S.-led war against Iran. Fuel oil costs jumped 74% while air transportation prices increased 22.4%.
Although Social Security increases are supposed to keep up with inflation, they often don’t cover rising costs such as health care, housing and prescription drugs, especially for seniors.
“Seniors have spent years seeing their expenses exceed their benefits,” Shannon Benton, director of the advocacy group Senior Citizens League, told NBC.
Highlighting Cola’s adjustment, Benton said: “It gives some breathing space but won’t undo the damage caused by what we’ve seen this decade. »
Aside from the pandemic, September’s inflation rate was the highest recorded before the midterm elections since 1990.
Wednesday’s announcement comes as a new Pew Research survey finds that 44% of Americans have struggled to afford at least one basic necessity in the past year, including medical care, transportation, housing or food. Some also reported getting food from a food bank or pantry.
As the midterm elections approach, the survey also reveals that 61% of Americans believe there is too much economic inequality in the United States. This view was more common among Democrats and Democratic-leaning independents (78%) than among Republicans and Republican-leaning independents (42%).
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