Social Security Cost of Living Adjustment: Major benefit change could be coming for 2027

Social Security beneficiaries may face a major benefit change by 2027. Although a higher-than-usual increase in the Cost of Living Adjustment is expected, the actual gains will be limited. Persistent inflation and rising Medicare premiums are projected to offset most of the increase, reducing the overall financial impact for recipients. These factors combined will eat away at the benefit growth, leaving beneficiaries with minimal net improvements despite the higher nominal adjustment figures reported for the period.