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Seniors group predicts a 2.8% Social Security benefit increase for 2027

The COLA, based on inflation, will be announced in October

Updated:

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Photo by Volodymyr Hryshchenko on Unsplash

Key Insights

  • Social Security’s 2027 cost-of-living adjustment (COLA) is projected at 2.8%, matching the 2026 increase.
  • A new proposal would cap annual benefits at $50,000 per person, or $100,000 per couple.
  • Advocacy groups warn the cap could effectively cut benefits for some retirees and faces strong opposition among seniors.

A modest increase in Social Security benefits could be on the horizon for retirees, but a controversial proposal to cap payments is stirring debate. 

The 2027 cost-of-living adjustment won’t be announced until mid-October, but the Senior Citizens League (TSCL), a nonpartisan advocacy group, said its latest analysis of inflation data suggests the 2027 COLA will be 2.8%. That would match the 2026 increase and translate into an average monthly boost of about $56.69 for retired workers. 

While any increase is typically welcomed by beneficiaries, TSCL says the projected adjustment underscores a larger concern: rising costs for essentials like housing and health care continue to outpace benefit growth, leaving many seniors financially strained.

$50,000 cap?

At the same time, policymakers and budget experts are exploring ways to shore up Social Security’s long-term finances. One proposal gaining attention — dubbed the “Six Figure Limit” — would cap annual benefits at $50,000 for individuals and $100,000 for couples.

The plan, put forward by the Committee for a Responsible Federal Budget, aims to address a projected funding shortfall that could otherwise lead to automatic benefit cuts of roughly 24% in the early 2030s if Congress takes no action. 

Supporters argue the cap would primarily affect higher-income retirees and could close a significant portion of the program’s long-term deficit. Estimates suggest it could eliminate about three-fifths of the funding gap over the next 75 years.

The argument against it

But critics, including TSCL, say the proposal amounts to a benefit cut for some retirees and could have bigger consequences over time. The group’s research indicates strong resistance among older Americans: 95% oppose cuts to current retirees’ benefits, and two-thirds oppose cuts for future beneficiaries. 

Advocates for seniors also argue that there are alternative ways to strengthen Social Security without reducing benefits. One commonly cited option is eliminating the cap on taxable earnings — currently set at $184,500 — so higher-income workers contribute more to the system. 

TSCL Executive Director Shannon Benton emphasized that approach, saying policymakers should focus on “strengthening America’s pension system” rather than reducing benefits for those who have paid into it over their working lives. 

The actual COLA is based on inflation data for July, August, and September.