A Large 2027 Social Security COLA Could Be Coming. Here's Why That Might Not Be Good News.

We're still months away from the official 2027 Social Security cost-of-living adjustment (COLA), but there's already a ton of speculation about where it will end up. The latest estimates suggest an above-average COLA is possible, even likely. That might sound like a good thing, but the truth is more complicated. Larger COLAs carry hidden drawbacks worth recognizing so you understand what to realistically expect next year.

A Large 2027 Social Security COLA Could Be Coming. Here's Why That Might Not Be Good News.. We're still months away from the official 2027 Social Security cost-of-living adjustment (COLA), but there's already a ton of speculation about where it will end up. The latest estimates suggest an above-average COLA is possible, even likely. That might sound like a good thing, but the truth is more complicated. Larger COLAs carry hidden drawbacks worth recognizing so you understand what to realistically expect next year. The Senior Citizens League (TSCL), a nonpartisan senior group, recently raised its 2027 COLA projection from 2.8% to 3.9%. This would add about $81 to the $2,081 average monthly retirement benefit as of April 2026. It's rare to see COLA projections increase by 1.1 percentage points in a single month, and it's due to the recent spi...