The Social Security Cost-of-Living Adjustment (COLA) for 2027 is expected to be 3.8 percent, up from this year’s COLA of 2.8 percent, The Senior Citizens League said in a June 10 statement.
COLA is an automatic annual change made to Social Security benefits to keep payments in line with changes in inflation. Currently, monthly Social Security payments amount to $2,026.41 per month for the average retiree. With the 3.8 percent increase, next year’s payments are projected to be $2,103.41, according to the organization.
While the average benefit is expected to rise by $77 per month next year, this would not be enough for older adults to cover their monthly expenses, the league stated, highlighting that the average cost of living for an older adult is about $2,700 per month. As such, next year’s projected Social Security payments represent a shortfall of roughly $600.
“[A 3.8 percent COLA] won’t be enough to make up the difference between what seniors bring in and what they need to live with dignity,” Senior Citizens League Executive Director Shannon Benton said. “We’re seeing inflation on the rise when more than half of seniors already can’t afford basic living standards. We’re talking about food, a roof over their head, and transportation. Many seniors already have to skip doctor’s appointments due to costs.”
The annual inflation rate, measured by the 12-month percentage change in the consumer price index, has consistently remained above 2 percent since early 2021, according to data from the Bureau of Labor Statistics. In recent months, inflation has surged amid the Iran war.
In February, the 12-month inflation rate was 2.4 percent, before rising to 3.3 percent in March, 3.8 percent in April, and 4.2 percent in May.
Gasoline prices rose by 7 percent last month, while fuel oil rose by almost 4 percent. Beef and veal prices dipped by 1.6 percent, and chicken prices declined marginally by 0.1 percent. Egg prices rose by 4 percent. Electricity costs rose by 0.6 percent.
The Senior Citizens League’s 2026 Senior Survey shows that 44 percent of elderly citizens are fully dependent on Social Security payments for all their income, the group said in its recent statement.
“24.8 million older Americans—more than ever—draw all their retirement income from Social Security,” the league stated. “[The survey] estimates that 57 percent of seniors survive on less than $2,000 a month, while 13 percent get by on less than $1,000, which places an estimated 5.6 million below the federal poverty line.”
Social Security Trust Fund
The Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement benefits to millions of Americans, could be depleted by the end of 2032, unless Congress acts to prevent this from happening, the Social Security Administration (SSA) said in a statement last week.The OASI and disability insurance funds combined are forecast to be exhausted by 2034.
In a June 9 statement, Treasury Secretary Scott Bessent said that the trust fund reports “reinforce the need for lawmakers to take action to support the long-term viability of these programs.”
“Combined with the Administration’s efforts to eliminate waste, fraud, and abuse across federal agencies, and ensure responsible stewardship of taxpayer dollars, we are working to preserve Social Security and Medicare programs,” he said.
This week, a group of lawmakers introduced the bipartisan Social Security Commission Act, aiming to address the insolvency issue of Social Security, according to a June 9 statement from the office of Rep. Tom Cole (R-Okla.).
The legislation seeks to create an independent, bipartisan commission of 13 members from the Republican and Democratic parties appointed by Trump and congressional leaders.
Within a year of the first meeting, the commission is required to report to Congress on the health of the Social Security initiative over a 75-year period and to provide recommendations on how to improve the program.
“The solvency of Social Security is at a critical point, and millions of Americans who have paid into this program throughout their working lives may not receive the money they deserve,“ Cole said. ”Therefore, doing nothing on Social Security is not an option.
“As a Congress, we must act. The Bipartisan Social Security Commission Act will allow us to find commonsense solutions to ensure the long-term survival of this program. Social Security is a promise we have made to American seniors that we must keep.”
