From The Motley Fool · Maurie Backman · · 40s
Social Security COLA Formula Flaw
Social Security's 2027 COLA increase may not keep up with inflation due to a flawed calculation method.
In brief
Social Security's 2027 COLA increase may not keep up with inflation due to a flawed calculation method. Social Security's 2027 COLA increase of 3.6% may not offset inflation as the current formula fails to reflect seniors' spending patterns. Originally reported by The Motley Fool.
2027 Social Security COLA Increase
Social Security benefits are expected to rise by 3.6% in 2027.
Current COLA Formula Problem
The current formula uses CPI-W, which doesn't reflect seniors' spending patterns.
Senior Citizens League Claim
The Senior Citizens League says Social Security recipients lost 13.7% buying power since 2016.
No Immediate Formula Change
Lawmakers show no plans to change the COLA formula soon.
What matters most
Social Security's 2027 COLA increase of 3.6% may not offset inflation as the current formula fails to reflect seniors' spending patterns.
