A 2.8% COLA means $56.60 more a month — but retirees are already behind

A 2.8% Cost of Living Adjustment in 2027 will add $56.60 to the average retiree’s monthly Social Security check, raising it from $2,024 to $2,081. That’s no faster than the projected increase in 2026, and it comes as most senior households already survive on just 58% of the income typical for working-age Americans. The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, measured from July through September and compared to the same period the prior year. The Senior Citizens League, which issued the 2027 forecast, warns that even with annual adjustments, retirees are not keeping pace. The current economy, marked by rising oil prices and stagnant wage growth, is not delivering relief. And the 2.8% bump does nothing to address the long-term threat: a potential 24% cut to benefits in 2032 if the program’s funding imbalance isn’t resolved. One proposal from the Committee for a Responsible Federal Budget would cap annual benefits at $50,000 per person — or $100,000 per couple — to close the gap.