How to Prepare Your Budget Now If the 2027 COLA Comes in Below Expectations
Retirees are seeing a lot of news about a big COLA -- but what if it doesn't pan out?
How to Prepare Your Budget Now If the 2027 COLA Comes in Below Expectations
Overview
In most years, Social Security provides a cost-of-living adjustment (COLA) to help ensure that benefit recipients can maintain their buying power. Prices increase over time because of inflation, and without COLAs, benefit payments over time would not go as far.
The official COLA announcement comes in October each year, but because of the importance of these benefit increases for seniors, experts estimate the upcoming benefit change throughout the entire year. Early estimates for the 2027 COLA have suggested that seniors could be in for a large increase.
Details
But what happens if that doesn't pan out? How can seniors begin preparing now for the possibility that the COLA will be much smaller than expected?
Source
Originally published at www.fool.com.
