How Much Should the Social Security Increase Be This Year to Make Ends Meet?

The 2027 Social Security Cost-of-Living Adjustment is already creating expectations among millions of retirees in the United States.

Although the official Cost-of-Living Adjustment, or COLA, announcement will not arrive until October, the most recent projections point to an increase higher than the one applied this year, driven by the rebound in inflation recorded over the past several months.

Why it matters: For many older adults, the monthly Social Security check represents their main source of income. That is why any change in the COLA can have a direct impact on their ability to cover essential expenses such as housing, food, medications, and transportation.

Inflation Rose Again and Changed the Forecasts

Current estimates indicate that the COLA for 2027 could be around 3.3%, according to calculations cited by The Senior Citizens League, or TSCL. The projection has gained strength after inflation showed signs of accelerating in April.

Data from the Bureau of Labor Statistics, or BLS, show that the Consumer Price Index, or CPI, reached an annual change of 3.8%, its highest level in nearly a year. In addition, the monthly increase was 0.6%, the largest recorded in approximately three years.

The rise in energy costs, especially gasoline, appears among the main factors behind this renewed inflationary pressure. Several costs associated with basic services that directly affect fixed-income households have also remained elevated.

Social Security COLA increase: Enough to make ends meet? – PHOTO: Shutterstock

This scenario is relevant because the COLA calculation is directly tied to changes in consumer prices.

The Average Social Security Increase May Not Be Enough

Although an adjustment higher than the one recently applied might seem like good news, many retirees question whether it will truly be enough to offset the rising cost of living.

The COLA for 2026 is 3.9%, higher than the 2.5% granted the previous year.

However, several groups representing older adults argue that annual increases do not always reflect the real impact beneficiaries face in categories such as health care, housing, and food.

Social Security COLA increase: Enough to make ends meet? – PHOTO: Shutterstock

The concern is not minor: Medical expenses, rents, and other essential services have seen increases that in many cases exceed the adjustments received by retirees.

As a result, even when monthly payments rise, many families still feel their budget shrinking.

Purchasing Power Remains the Biggest Problem

One of the figures that most worries those who depend on Social Security is the gradual loss of purchasing power.

Recent figures indicate that the real value of benefits has declined by approximately 20% since 2010.

In other words, the accumulated increases over recent years have not managed to maintain the same level of purchasing power that retirees had more than a decade ago.

The situation becomes even more complex when inflation grows faster than wages and fixed incomes. According to the most recent data, this situation occurred again for the first time since 2023.

Social Security COLA increase: Enough to make ends meet? – PHOTO: Shutterstock

Lower-income households tend to be the most affected because they allocate a larger share of their budget to basic expenses that have seen steep increases.

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So, How Much Should Social Security Rise to Make Ends Meet?

Current projections point to an increase of around 3.3%, but many retirees believe that figure would barely offset recent inflation.

Given that the purchasing power of benefits has fallen by nearly 20% since 2010, some experts and older adult advocacy groups argue that an adjustment above inflation would be needed to truly ease pressure on family budgets.

What’s next: If inflation remains elevated for the rest of the year, current projections could hold steady or even increase.

However, for many retirees, the real challenge will not only be the percentage of the adjustment, but whether that Social Security COLA increase can recover part of the purchasing power lost over the past several years.