Retirees set for cash boost as Social Security COLA forecasted to spike in 2027

Seniors may be in line for a raise.The average Social Security check currently sits at roughly $2,071, according to the Social Security Administration.But that could soon change as experts estimate the next Cost of Living Adjustment (COLA) will be a modest 3.8%. The COLA is the yearly increase meant to help Social Security keep up with rising prices.This means retirees may see their checks boosted to $2,149, a $78 increase.

That’s if The Senior Citizens League (TSCL) — a non-partisan advocacy group that makes very accurate COLA projections — is correct.The TSCL just announced its forecast, which won’t be confirmed until October, that seniors may see a 3.8% boost, 1.0 percentage point higher than last year’s 2.8% increase.However, the numbers shift slightly as the TSCL calculates that the average benefits will rise by $73.62 — so checks would go from $1,937 to $2,011.Regardless, the projected increase would offer seniors a much-needed boost as gas, groceries and energy prices remain high.The COLA is always determined by the CPI-W’s percentage increase in the third quarter of the year from July, August and September.

While the latest inflation report revealed cooling in June from May’s 4.2%, retirees may still need some extra cash.But retirees could see an even bigger bump after Congress reintroduced the Social Security 2100 Act.

First introduced back in 2017, the bill would make more changes to Social Security, including a higher minimum benefit and a new inflation measure for calculations.If passed, the bill would raise benefits by 2%, set the new minimum benefit to 125% of the Federal poverty line, and switch the COLA calculation to the CPI for the Elderly (CPI-E).Let’s break it down: the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) vs the CPI-E (Consumer Price Index for the Elderly).The CPI-W currently calculates Social Security COLAs.It tracks the spending of working-age people — specifically wage and clerical ...