Social Security's 2027 COLA Could Be Much Bigger Than the Latest Forecast Implies
Social Security's 2027 COLA is projected to be 3.8%, but the actual pay raise could be much larger if inflation remains elevated.
Social Security's 2027 COLA Could Be Much Bigger Than the Latest Forecast Implies
Overview
Social Security benefits receive an annual cost-of-living adjustment (COLA) to help retired workers keep up with rising prices. The latest forecasts from The Senior Citizens League (TSCL) put the 2027 COLA at 3.8%, a full percentage point above the 2026 COLA.
However, inflation has accelerated sharply in recent months due to soaring energy prices tied to the Iran conflict, which has caused the largest oil supply disruption in history, according to the International Energy Agency. And the downstream impacts of the conflict could keep inflation elevated through the summer, leading to a much larger COLA than TSCL's current forecast implies.
Details
Here's what Social Security beneficiaries should know.
Source
Originally published at www.fool.com.
