"Social Security COLAs are based on inflation. When inflation is strong, benefits tend to get a larger boost. In 2026, Social Security benefits got a 2.8% COLA, and initial estimates are calling for an even larger COLA in 2027."
"If you're a Social Security recipient, you might love the idea of getting a 3.2% COLA next year. But don't start banking on it just yet. For that 3.2% COLA projection to be accurate, inflation will need to remain elevated through the third quarter of the year."
Social Security benefits receive annual cost-of-living adjustments (COLA) based on inflation. In 2026, benefits received a 2.8% COLA, with estimates for 2027 suggesting a 3.2% increase. This potential rise is influenced by elevated oil prices and overall inflation, which have increased consumer costs. However, for the 3.2% estimate to hold, inflation must remain high through the third quarter of the year. If fuel prices decrease, the COLA may be lower than projected, making it unwise to rely on preliminary estimates.
Read at 24/7 Wall St.
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