Social Security COLA projected at 3.5% for 2027, boosting monthly benefits

The Senior Citizens League, known for accurate Social Security forecasts, has issued its final projection of a 3.5% cost-of-living adjustment for 2027, marking the biggest rise in three years. This would raise the typical monthly benefit from about $2,071 to roughly $2,143, an increase of $72.49, while spousal benefits could climb by $112.28 to $3,320. Beneficiaries will get their individualized benefit statements in December, which will include Medicare deductions.

Meanwhile, lawmakers are debating the Social Security 2100 Act, a bill that would increase benefits by 2%, set a higher minimum based on the federal poverty line, and switch the COLA calculation to the CPI-E, a senior-focused inflation index. The legislation also proposes expanding the payroll tax to incomes over $400,000 to extend the trust fund’s solvency.