Social Security recipients are in line to receive a 3.5% COLA increase in 2027, raising the average benefit payment from $1,941.76 to $2,009.72. While the projected increase will be the highest in four years, it’s still not enough to offer a stable retirement. Many retirees have a fixed income with little opportunity to increase what they earn each month, leaving them more financially vulnerable to rises in cost-of-living. The Social Security Administration calculates cost-of-living increases by comparing the average inflation rate from July to August to the same period last year. That method has led to increases ranging from a low of 1.3% to a high of 8.7% in the past six years. The largest COLA ever awarded was in 1980, when seniors received a whopping 14.3% increase. Senior Citizens argue that because the government typically raises the cost of Medicare along with the COLA raise, it’s as though they’re getting nothing.
