The Housing Costs Rising Faster Than Social Security COLA
Summary
The Social Security Administration has announced a 3.6% increase for benefits in 2027, raising the average retired worker’s monthly payment by $75. However, rising housing costs and higher Medicare premiums mean many retirees may still struggle to cover their expenses despite the increase.Key Facts
- Social Security benefits will rise by 3.6% in 2027, increasing average monthly payments from $2,095 to $2,170.
- This increase is larger than last year’s 2.8% adjustment.
- Inflation is currently about 3.7%, mainly due to higher energy prices following disruption caused by the conflict in Iran.
- Gasoline and diesel prices rose by 34.2% over the past year.
- Housing costs for retirees are increasing faster than the Social Security benefit adjustment.
- Medicare Part B premiums are expected to rise to $209.50 a month starting in January.
- Social Security cost-of-living adjustments use a measure of inflation that may not fully reflect the rising costs retirees face, like housing and healthcare.
- Experts say the COLA increase helps but still may not cover the full rise in everyday expenses for retired Americans.
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