The Social Security Administration has announced a 4.2% cost-of-living adjustment for 2027, increasing the average monthly benefit by $76 to $1,883 as persistent inflation continues to erode retirees' purchasing power.

Impact

The COLA applies to all 72 million Social Security beneficiaries starting January 2027. While the increase exceeds the 3.2% COLA for 2026, advocates say it still falls short of actual senior living cost increases.

Trust Fund Concerns

The Social Security trust fund is projected to be depleted by 2033, at which point benefits would be automatically cut 21% without Congressional action.