The Senior Citizens League on Tuesday kept its estimate for the 2027 Social Security cost-of-living adjustment at 3.8%, saying average monthly benefits would rise by about $74 if that projection ultimately becomes official. The group also renewed its support for legislation that would change how annual benefit increases are calculated and extend the program’s long-term finances.
A cost-of-living adjustment, or COLA, is the annual increase applied to Social Security benefits to help retirees keep pace with inflation. The Social Security Administration calculates the adjustment using inflation data, with the official 2027 COLA expected to be announced in October.
Cooler Inflation Tempers COLA Expectations
TSCL said its latest estimate remains unchanged from last month and would increase the average monthly Social Security benefit from $1,937.53 to about $2,011.15.
The U.S. Bureau of Labor Statistics reported Tuesday that the Consumer Price Index rose 3.5% year over year in June. The lower-than-expected inflation reading reflected declines in energy prices, helping ease expectations for a larger Social Security cost-of-living adjustment.
