Each year, retirees look forward to an increase in their Social Security benefits. The increase is called a cost-of-living adjustment, and it’s based on the year-over-year increase in the Consumer Price Index, as calculated in the third quarter each year.
This year’s COLA is just 2.8%, which raised benefits by an average of $56 per month, according to the Social Security Administration. Slowing inflation could push next year’s adjustment even lower. If The Senior Citizens League (TSCL)’s predictions are correct, the 2027 COLA will be just 2.5%.
