Mary Johnson Cuts 2027 Social Security COLA Estimate to 3.4% as Inflation Eases
Updated
Updated · AOL · Aug 21
Mary Johnson Cuts 2027 Social Security COLA Estimate to 3.4% as Inflation Eases
3 articles · Updated · AOL · Aug 21
Summary
Johnson now sees a 3.4% Social Security cost-of-living adjustment for 2027, down from her earlier 3.7% estimate ahead of the SSA’s October announcement.
Lower inflation drove the revision: the CPI-W was up 3.4% in July, and the official COLA will still depend on July-through-September data, leaving room for further changes.
A 3.4% increase would add about $71 a month, or roughly $850 a year, to the average retired worker’s $2,085 monthly benefit; other forecasts cluster at 3.5% to 3.6%.
That gain would still top the 2.8% COLA for 2026 and the program’s 2.6% long-term average, making it the biggest increase since 2023’s 8.7% jump.
Retirees may keep less in practice because Medicare Part B premiums are projected to rise to $209.50 from $202.90, while benefits have lost 13.7% of purchasing power since 2010.