Seniors just got huge news regarding Social Security payments

It looks like retirees are going to be getting bigger Social Security checks next year.

A new report shows that the Social Security Cost of Living Adjustment (COLA) could be nearly 4% in 2027 — much higher than the bump seniors saw this year and a big increase from what experts forecasted earlier this year.

It’s good news for seniors, but is it enough to help them stand up to inflation, rising Medicare premiums, and other economic challenges? That’s another story.

Social Security payments should get a decent-sized bump in 2027

The Senior Citizens League (TSCL) is now predicting a 3.9% COLA increase for 2027, up from the 2.8% bump seen this year. 

The increase should bring the average Social Security check up to $2,162.33 per month. That’s an increase of just over $81 compared to current averages.

The new forecast is a sharp jump compared to TSCL’s earlier predictions, which saw the COLA adjustment holding steady at 2.8%. The group will continue updating its COLA predictions monthly throughout the year. The official COLA adjustment will be announced in October by the Social Security Administration.

Social Security checks will likely rise next year, but it may not be enough to help seniors overcome today’s economic hurdles.

Photo by Curly_photo on Getty Images

Social Security benefits may rise, but probably not enough for most seniors

If it comes true, the larger-than-normal increase will be good news, for sure, but it may not be enough to help seniors take the edge off today’s economic challenges. For one, inflation is already at 3.8%, so if it rises much further, that 3.9% COLA bump won’t even keep pace.

“Many seniors are telling us the same thing: As inflation picks back up, life still does not feel affordable,” says Shannon Benton, executive director at TSCL.

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The COLA increases also won’t help those who are on Medicare much. Medicare premiums have also been steadily rising over the last five years, and according to the most recent Medicare Trustees Report, Part B premiums will likely see an 8.8% jump (annually) through 2030. Part D premiums will increase 7.1% per year. 

“Healthcare remains one of the biggest financial pressures facing seniors,” the TSCL said in a press release. “Even modest increases in Medicare premiums, prescription drug costs, or insurance expenses can significantly reduce the real value of annual COLA increases.”

All in all, Social Security benefits have lost 13.7% of their buying power over the last decade, according to TSCL analyses.

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