From The Motley Fool · Maurie Backman · · 50s
Social Security COLA 2027 Holds Up?
Social Security's 2027 3.6% COLA may not hold up against inflation after history shows benefits lose value.
In brief
Social Security's 2027 3.6% COLA may not hold up against inflation after history shows benefits lose value. Social Security's 2027 3.6% COLA likely fails to keep up with inflation as historical data shows benefits lose 13.7% purchasing power since 2016. Originally reported by The Motley Fool.
2027 Social Security COLA
Social Security benefits will get a 3.6% cost-of-living adjustment in 2027.
Historical COLA Shortfall
Social Security benefits have lost 13.7% of purchasing power since 2016 due to insufficient COLAs.
Why COLAs Fail
Social Security COLAs use CPI-W, which doesn't reflect seniors' healthcare costs that rise faster than inflation.
What to Expect
Seniors may need to return to work, relocate, or adjust finances if their 2027 COLA doesn't hold up.
The big picture
Social Security's 2027 3.6% COLA likely fails to keep up with inflation as historical data shows benefits lose 13.7% purchasing power since 2016.
