That points to a 4.7% Social Security COLA for 2027, according to a new estimate from Mary Johnson, an independent Social Security and Medicare policy analyst. Last month, Johnson had forecast a 4.2% COLA<\/a> for next year.<\/p>\n “There’s a considerable likelihood that it’s going to climb even higher than 4.7% as data continues to come in, especially on the gasoline prices,” Johnson said. \u00a0<\/p>\n The Social Security Administration typically announces the COLA for the following year in October, and the change is based on third-quarter data.<\/p>\n Meanwhile, the Senior Citizens League, a nonpartisan senior group, now forecasts a 3.8% COLA<\/a> for 2027, down from its 3.9% May estimate. The estimate did not note a reason for the decline, and the Senior Citizens League was not available for comment by press time.<\/p>\n Read more CNBC personal finance coverage<\/p>\n In 2026, about 75 million Social Security and Supplemental Security Income beneficiaries saw a 2.8% boost<\/a> to their monthly checks through the cost-of-living adjustment.<\/p>\n But while that increased the average $2,000 monthly benefit by about $56, beneficiaries would need $94 per month to keep up with inflation, according to Johnson. <\/p>\n The annual COLA has averaged about 3.1% over the past decade, according to the Social Security Administration.<\/p>\n Social Security’s COLA is calculated using a subset of the consumer price index known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.<\/p>\n Broad CPI inflation rose 4.2% over the past 12 months as of May, the Bureau of Labor Statistics said on Wednesday. Meanwhile, the CPI-W is up 4.4% over the past 12 months. <\/p>\n Price increases affecting the COLA forecast<\/p>\n The categories that have seen the biggest jump in the CPI-W over the past 12 months include fuel oil, which has shot up 64.1%; gasoline, 40.7%; and airfare, 25%. <\/p>\n Older Americans continue to grapple with higher costs. <\/p>\n In the wake of the Covid-19 pandemic, inflation rose to new highs, prompting larger Social Security COLAs<\/a> of 5.9% in 2022 and 8.7% in 2023.<\/p>\n Yet while the pace of inflation subsided, bringing Social Security cost-of-living adjustments down in subsequent years, consumer prices have mostly stayed higher. <\/p>\n A majority, or 69%, of adults ages 50 and over say they worry that prices are rising faster than their income, according to AARP’s most recent financial security trends survey<\/a>, fielded in January. <\/p>\n Meanwhile, 61% of older Americans say the average $2,000 monthly Social Security payment is not enough, the survey found.<\/p>\n There has been debate among experts and lawmakers as to whether the CPI-W accurately reflects the prices older Americans experience. <\/p>\n To be sure, everyone has a personal inflation rate<\/a> based on their individual spending needs and factors such as where they live.<\/p>\n Beef and coffee<\/a> are among the grocery categories<\/a> with the highest inflation for the broader consumer price index. Yet the average price for a pound of beef varies based on location.<\/p>\n In response to high food prices, seniors may be eating less frequently\u00a0and substituting less expensive items for pricier ones, such as\u00a0beef, to help curb their grocery costs, Johnson said.<\/p>\n![\"The](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/06\/108216511-17613067991761306797-42246871675-1080pnbcnews.jpg\")
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