Social security recipients will see a ۳.۶% cost-of-living adjustment (Cola) in ۲۰۲۷, increasing retirement benefits by an average of $۷۵ per month as millions of Americans continue to grapple with rising prices.
Nearly ۷۲ million social security beneficiaries will see higher payments beginning in January ۲۰۲۷, while approximately ۷.۳ million supplemental security income (SSI) recipients will receive increased payments starting on ۳۱ December ۲۰۲۶, according to the Social Security Administration.
“Social security will implement this cost-of-living adjustment for ۷۶ million Americans, giving them greater financial stability,” SSA commissioner Frank J Bisignano said on Wednesday.
Consumer prices climbed at an annual rate of ۳.۷% in September, up from ۳.۴% in August, according to the Bureau of Labor Statistics. Inflation has reached its highest level since hitting a three-year peak of ۴.۲% in May. Gasoline prices rose ۳۴% from last year, accounting for more than half of the overall price increases and driven largely by the US’s war on Iran. Fuel oil costs jumped ۷۴% while air travel prices increased ۲۲.۴%.
Although social security increases are meant to keep up with inflation, they often do not cover rising costs like healthcare, housing and prescription drugs, particularly for senior citizens.
“Seniors have spent years watching their expenses outpacing their benefits,” Shannon Benton, director of the advocacy group Senior Citizens League, told NBC.
Pointing to the Cola adjustment, Benton said: “This provides a little breathing room but won’t undo the damage of what we’ve seen this decade.”
Aside from the pandemic, September’s inflation rate was the highest recorded ahead of a midterm election since ۱۹۹۰.
Wednesday’s announcement comes as a new Pew Research survey found that ۴۴% of Americans struggled to afford at least one basic necessity over the past year, including medical care, transportation, housing or food. Some also reported getting food from a food bank or pantry.
With the midterm elections approaching, the survey also found that ۶۱% of Americans believe there is too much economic inequality in the US. That view was more common among Democrats and Democratic-leaning independents (۷۸%) than Republicans and Republican-leaning independents (۴۲%).
