What the Latest Social Security COLA Forecasts Mean for Your $2,000 Benefit in 2027
The number's not etched in stone yet, but there's a reasonably solid estimate of what's coming.
Overview
The final number hasn't been determined yet. But, with the recent release of August's inflation data, experts have a pretty good idea of how much of a percentage raise Social Security recipients will be getting beginning with this coming January's payments.
But what does this percentage increase mean in practical, tangible terms for, say, a typical beneficiary collecting $2,000 per month?
Details
The Social Security Administration doesn't arbitrarily decide any given year's cost-of-living adjustment -- or COLA -- to the program's payments. This annual increase is legally mandated based on the Bureau of Labor Statistics' measure of consumer inflation during the third calendar quarter of the year. The annualized consumer inflation rates for July, August, and September are averaged, and become the amount of the following January's COLA.
Source
Originally published at www.fool.com.