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Looking forward to 2027 COLA - PSCA
This, the 3rd quarter of each year (July, August, and September), is the period of time that next year’s Cost of Living Adjustment (COLA) is determined. The average inflation rate over this 3 month period becomes next year’s COLA rate, which is used by the Social Security Administration to increase everyone’s monthly Social Security payment. Although, obviously, we still have 2 months to go, the early indicators are that we will see about a 3.4% to 3.6% increase for Social Security, according to this article from the Plan Sponsor Council of America (PSCA). Of course, these estimates are still somewhat speculative, especially considering the volatility in energy costs we have experienced in recent months (which may continue through this period). We won’t actually know the 2027 COLA until mid-October when it is formally announced by the federal government. One thing, however, is known – seniors must wait until next year to get a COLA increase to offset the higher prices we have already been paying for many months in 2026. This PSCA article explains details of how COLA is determined, along with a historical perspective of the numbers. Click here to read more.