Social Security announces 2027 cost of living boost for recipients

The Social Security Administration announced Wednesday a 3.6% cost-of-living adjustment for 2027, raising the average retired worker benefit from $2,095 to $2,170 a month, about $75 more. The increase, highest in four years after 2026’s 2.8%, takes effect with December benefits paid in January and reaches about 76 million Social Security and SSI beneficiaries. Commissioner Frank Bisignano said it gives recipients greater financial stability. Maximum taxable earnings rise to $192,300 in 2027. Advocates and retirees said costs still outpace the boost. Nancy Altman said the COLA is not keeping up with prices. Lorrie Ufkin said it does not meet Medicare changes and called a medication cost jump catastrophic. Jaime Jakubczak, back at work after retiring at 55, called the adjustment a pittance. AARP’s Myechia Minter-Jordan said one in five older Americans have no retirement savings, making the COLA critically important. Funding remains unresolved. Fox Business cited CRFB warnings of 22% cuts in 2032 and trust fund depletion that year covering about 78% of benefits; AP reporting put combined trust fund shortfalls at 2034 with about 83% payable. Sens. Elizabeth Warren and Bernie Moreno proposed lifting the payroll tax cap in June. No permanent congressional fix has passed.