A new report from The Senior Citizens League predicts that Social Security benefits will increase by 3.3% in 2027, a significant rise from the current 2.8% adjustment. This would bring the average monthly payment to $2,087, up over $60 from 2026.
The cost-of-living adjustment (COLA), calculated annually by the Social Security Administration to keep pace with inflation, would be the third highest in the past decade if the projection holds. However, the increase would not cover April 2026's inflation rate of 3.8%, and economists warn inflation could hit 4% or higher by summer.
Heather Long, chief economist at Navy Federal Credit Union, told PBS News that unresolved global conflicts could push inflation even higher. If inflation continues to climb, the 2027 COLA projection may increase, but it may still fall short of retirees' financial needs.
Adding to concerns, experts warn that Social Security's trust fund could be exhausted by 2032, potentially reducing payments by up to 30%. A January survey by Clever Real Estate found the average retiree has saved only $288,700, far below the $823,800 they consider necessary for a comfortable retirement.
The National Council on Aging noted in a 2025 report that significant economic improvements would be required to ensure financial stability for older Americans amid rising living costs and financial shocks.
