Social Security recipients to get 3.6% cost of living boost, an average of $75 per month

The Social Security Administration announced a 3.6% cost-of-living adjustment for 2027, which will increase monthly benefits by an average of $75 for the 73 million people receiving Social Security and nearly 7.5 million receiving Supplemental Security Income. The adjustment is financed by payroll taxes, with the taxable earnings cap set to rise to $192,300 in 2027 from $184,500 in 2026.

Commissioner Frank Bisignano said the adjustment will give recipients 'greater financial stability.' However, some recipients say the increase is insufficient. Lorrie Ufkin, a 71-year-old retiree from outside Rochester, Minnesota, stated the COLA 'will not put a dent in her healthcare costs' and that her medication costs are expected to rise from $11 to $200 per month after a temporary Medicare Part D subsidy ends.

Jaime Jakubczak, a 68-year-old resident of Buffalo, New York who retired early at 55, said the COLA is 'a pittance' given rising food, healthcare, and gasoline prices, and noted it is offset by high inflation and a proposed 3.9% property tax increase in his town. He added, 'We were getting ahead a little bit with the COLA based on inflation, but the inflation is so high that it doesn’t offset what our COLA allowance is.'

Senior advocacy groups emphasize the importance of the adjustment. AARP CEO Dr. Myechia Minter-Jordan said, 'There’s a lot on the line financially right now for older Americans — one in five have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security’s cost-of-living adjustment critically important.' An AARP poll from September found about three-quarters of those 50 or older disagreed that a 3.5% COLA in 2027 would be enough to keep up with rising prices.

Sources: Las Vegas Review-Journal