A new report has revealed that next year’s Social Security payments will rise substantially from 2026 figures.
Social Security benefits are predicted to bump up to 3.3 percent in 2027, according to advocacy group The Senior Citizens League. That’s nearly a 20 percent increase over the current 2.8 percent adjustment.
The 2027 average monthly payment to retirees would be $2,087, up more than $60 a month over 2026.
The “cost-of-living adjustment” is made by the Social Security Administration and happens yearly to keep up with inflation.
If 2027’s adjustment remains at 3.3 percent, it will mark the third-highest jump in the past 10 years, The Senior Citizens League said.
While the projected increase would have covered the inflation rate from January to March 2026, it would not keep pace with April’s 3.8 percent increase.
Economists believe inflation will go even higher before the summer ends.
“I and many economists think inflation will probably hit 4 percent maybe in May or the June readings,” Heather Long, chief economist at Navy Federal Credit Union, told PBS News Tuesday. “If we don't have a resolution to the Middle East conflict, then we could see potentially even higher numbers.”
If inflation continues to climb, 2027 cost-of-living adjustment projections could rise, too. However, it may not be enough to ease to the financial stress many retirees are feeling as they grapple with an uncertain future.
Experts believe that a critical funding source for Social Security will run out by 2032. If that happens, payments could drop by as much as 30 percent. In today’s terms, that means the average monthly Social Security payment would fall from $2,071 to $1,449.
The potential of lower Social Security payments adds further stress to a pervasive retirement savings crisis. The average retiree believes they need $823,800 to enjoy a comfortable retirement but have just $288,700 saved, according to a January survey from Clever Real Estate.
A turnaround in retiree financial stability is possible but significant changes to the economy and seniors’ finances would have to occur, the National Council on Aging wrote in a 2025 report.
“Financial patterns over the next several years would need to improve dramatically in order for most older Americans to maintain economic security in the face of rising living costs and increasing risks of financial shocks,” the council wrote.
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