Retirees Could See the Biggest Social Security COLA in Years
Retirees could see the biggest Social Security benefits boost in years. But that is nothing to celebrate.
According to an article by The Motley Fool, analysts predict the 2027 Social Security cost-of-living adjustment (COLA) could be 3.9 percent or possibly higher if inflation continues to climb. We won’t know for sure until October, but it’s looking likely especially if the war with Iran continues.
The news report says. “A 3.9 percent COLA would add $81 to the $2,081 average monthly retirement benefit as of April 2026, bringing it to $2,162 per month.” That extra $81 won’t move the needle much, but every dollar counts when you are a senior living off a fixed income.
Calls for a Better COLA Calculator
This is one of the main reasons why we think Social Security needs a new COLA calculator. The current formula doesn’t adequately account for senior spending. Healthcare and housing tend to be the biggest expenses for older Americans, and the cost of both remains high.
This is why senior advocates, including The Seniors Trust, believe the Consumer Price Index for the Elderly (CPI-E) should be used to calculate the COLA instead of the Consumer Price Index for Wage Earners (CPI-W). This index shows how inflation actually impacts the typical retiree based on seniors’ spending habits.
We are calling on Congress to enact the Social Security Expansion Act. It calls for adopting the CPI-E as the COLA calculator, better ensuring that Social Security benefits keep pace with inflation.
Additionally, this landmark piece of legislation would also extend the solvency of the Social Security trust fund through 2096, expand Social Security benefits by about $200 a month for current and new beneficiaries, require millionaires and billionaires to pay their fair share into Social Security by lifting the wage cap, and improve the Special Minimum Benefit for Social Security recipients which would help low-income workers stay out of poverty.
Is this something you can get on board with? Join us in urging lawmakers to enact the Social Security Expansion Act. You can show your support by signing our petition.
