Millions of Social Security recipients could receive an average increase of $77 per month in 2027.
This comes amid advocates renewing calls for a fundamental overhaul of how cost-of-living adjustments (COLA) are calculated.
Currently, the Senior Citizens’ League estimates a 3.8% increase in COLA for 2027, meaning that retirees will have an average of about $2,103 each month. Although this is better than the 2.8% increase in 2026, activists claim that this amount of money is still $597 less than the average cost of living of older people, estimated at $2,700.
The annual COLA is calculated in October by the Social Security Administration, based on the changes in prices between July, August, and September, measured by the Consumer Price Index for Urban Wage Earners (CPI-W). When prices change, benefits are increased by the same percentage starting from the next January.
But critics argue the current formula fails to indicate how older Americans actually spend their money. The Senior Citizens’ League and AARP are pushing for adoption of the Consumer Price Index for the Elderly (CPI-E), an experimental metric introduced in 1987 that tracks spending patterns of Americans aged 62 and older.
Notwithstanding its advantages, the CPI-E is still categorised as “experimental,” while the sample size is considerably smaller than that of the CPI-W. The Social Security Administration has not responded to the recommendations.
2026-08-01 21:27:00
