The 2027 cost-of-living adjustment for Social Security will be 3.6 percent.
That increase translates to roughly $75 more per month for the average recipient.
The figure applies to benefits paid in 2027, not the current year.
Whether the adjustment keeps pace with inflation depends on how seniors spend their money.
Americans aged 65 and older allocate a larger share of income to healthcare than younger workers do.
Medical costs have risen faster than the overall inflation rate in recent years.
Housing and food also consume significant portions of senior budgets.
Those categories have seen their own price swings, separate from the broader index.
As a result, a single COLA figure may not reflect every retiree’s actual experience.
Some seniors may find the increase covers their rising costs, while others may not.
The adjustment is calculated using a specific inflation measure tied to urban wage earners.
That index does not perfectly match the spending patterns of older Americans.
The debate over whether COLA should use a different measure, such as the CPI-E, continues.
For now, recipients will see the 3.6 percent boost beginning in January 2027.
Individual circumstances will determine how far that extra $75 goes each month.
