The latest 2027 COLA estimates - 401k Specialist
Social Security’s Cost of Living Adjustment (COLA) is a snapshot comparison of Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) measurements from the previous year’s third quarter to the same period in the current year. Since the annual adjustment trails actual inflation, it is intended to serve as a mechanism for beneficiaries to “catch up” to rising costs.
The adjustment is not calculated until after the CPI-W numbers for July-September are published, typically in mid-October, for inclusion in benefit payments in the following January. Although the official COLA is not announced until then, experts tracking inflation statistics throughout the year offer regular conjecture on how the size of the adjustment is shaping up. For example, predictions are surfacing that the 2027 COLA will be between 3.9 percent and 4.2 percent, an adjustment substantially higher than last year’s 2.8% COLA. Amanda Umpierrez, writing for 401k Specialist, reports on the reasons behind the significant increase in the 2027 COLA estimates. Read Ms. Umpierrez’s article here…
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