A new estimate shows that next year’s cost-of-living adjustment could bring a big bump for Social Security and Supplemental Security Income beneficiaries. (Disability Scoop)
Social Security and Supplemental Security Income beneficiaries could see a big jump in their monthly payments come next year.
The cost-of-living adjustment, or COLA, for 2027 is likely to grow to 3.9%, according to a new estimate from the Senior Citizen’s League, a nonpartisan group that advocates for seniors.
That would be a significant hike over this year’s 2.8% rise.
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The cost-of-living adjustment is applied automatically each year to account for inflation. It is based on third quarter results from the government’s Consumer Price Index for Urban Wage Earners and Clerical Workers. The Senior Citizens League said its estimate relies on data released this month.
The COLA has varied significantly in recent years, ranging from zero in 2015 to 8.7% in 2022.
With high oil prices potentially driving the cost of food and other goods up even more, inflation could continue to increase, the Senior Citizen’s League said, possibly leading to an even larger COLA.
Meanwhile, the group warned that the COLA in its current state is insufficient. In a separate report, the Senior Citizen’s League found that the automatic adjustment is failing to truly keep up with inflation and that compared to 2016, benefits are worth just 86.3 cents on the dollar.
Over 7.3 million people, including many with disabilities, receive SSI each month. The maximum federal SSI benefit this year is $994 per month for individuals and $1,491 for couples, according to the Social Security Administration, though payments can be higher since some states add in extra.
The Social Security Administration is expected to officially announce what the COLA will be for 2027 in October.
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