Experts Urge Delaying Social Security Claims Despite 3.4%-3.6% 2027 COLA Outlook
Updated
Updated · CNBC · Aug 27
Experts Urge Delaying Social Security Claims Despite 3.4%-3.6% 2027 COLA Outlook
3 articles · Updated · CNBC · Aug 27
Summary
A projected 3.4% to 3.6% Social Security COLA for 2027 is not a good reason to claim benefits early, retirement experts said, arguing most people still gain more by waiting.
An 8% increase for each year benefits are delayed past full retirement age up to 70 raises the base benefit, and every future COLA compounds on that larger monthly check.
Mahaney’s example shows a $3,000 full-retirement benefit growing to $3,960 at 70 before COLAs; with COLAs included, the estimate rises to $5,091, versus $3,205 at 66 and $2,250 at 62.
That compounding matters in high-inflation years: the 8.7% COLA in 2023 would have added $395 a month for a claimant at 70 versus $225 for one who claimed at 62.
The official 2027 COLA will be set in October from third-quarter inflation data, as Social Security’s retirement trust fund is projected to run dry in 6 years and lawmakers weigh possible COLA changes.