Social Security Benefits Set for Changes in 2027 as COLA Estimate Emerges
WASHINGTON — Millions of Americans receiving Social Security benefits are set to see changes in 2027, with the annual cost-of-living adjustment (COLA) expected to be announced on October 14.
While the Social Security Administration (SSA) has yet to release the official figure, early estimates suggest that beneficiaries could receive a modest increase in their monthly payments next year.
The American Association of Retired Persons (AARP) currently projects a 3.5% COLA increase for 2027, based on recent inflation trends. If the estimate holds, the adjustment could mean an average increase of about $73 per month for retirees.
The official COLA figure is expected to be announced after the release of the September Consumer Price Index data.
Social Security and Supplemental Security Income benefits increased by 2.8% in 2026, following a 2.5% increase in 2025. Over the past decade, the average annual COLA has been about 3.1%.
Full Retirement Age Expected to Remain at 67
Another key issue for Americans approaching retirement is whether the full retirement age will increase in 2027.
Under current law, the full retirement age is 67 for people turning 62 in 2026. There is currently no further increase scheduled under the law.
Americans can begin claiming Social Security retirement benefits as early as age 62, but claiming benefits before reaching full retirement age results in a permanent reduction in monthly payments.
Those who delay claiming benefits beyond full retirement age can receive higher monthly payments, with delayed retirement credits available until age 70.
The eligibility age for Medicare remains 65.
Geoffrey Schmidt, a certified public accountant, told Yahoo Finance that under current law, the full retirement age will not rise beyond 67.
Social Security Faces Long-Term Solvency Concerns
Despite the expected increase in benefits, Social Security continues to face significant long-term financial challenges.
According to the latest Social Security trustees' projections, the program's reserves could be depleted as early as the fourth quarter of 2032 if no changes are made.
If the trust funds become depleted, Social Security would not necessarily stop paying benefits altogether. However, beneficiaries could face reduced payments unless Congress takes action to address the program's finances.
For now, retirees and other beneficiaries will have to wait until October 14 for the official 2027 COLA announcement, which will determine how much monthly Social Security payments are expected to increase next year.
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