Early Clues Point to a Bigger 2027 Social Security COLA, with Caution

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Source: The Motley Fool
Early Clues Point to a Bigger 2027 Social Security COLA, with Caution
Photo: The Motley Fool
TL;DR Summary

COLAs are based on third-quarter inflation. April’s CPI rise of 3.8% hints at a larger 2027 COLA than 2026, with the Senior Citizens League forecasting around 3.9% (aligned with the CPI-W used for COLAs). But the official 2027 COLA won’t be announced until October, and any increase could be offset if energy prices fall or Medicare Part B premiums rise. A bigger COLA isn’t necessarily a win for retirees, as higher benefits can come with higher costs; diversification of income or returning to work may help supplement Social Security.

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