2027 Social Security COLA Seen at 3.5%, Sparking Debates on Caps

August inflation data point to a 2027 COLA around 3.5%, the biggest since 2023, with the SSA to confirm after September data and announce on Oct. 14. A 3.5% COLA would boost average checks by roughly $70 monthly, though the final figure could change with September’s inflation. The rise feeds into broader concerns about solvency of the Social Security trust fund (projected to run dry by 2032) and renewed talk of reforms, including caps. Medicare Part B premiums and other costs continue to erode retirees' purchasing power, while pundits differ on the exact COLA forecast (CRFB at ~3.4% vs. trustees’ 2.7%).