More than three-quarters of older Americans fear next year's Social Security cost-of-living adjustment (COLA) will be insufficient to keep up with rising prices, according to a new survey released ahead of Wednesday's announcement. The research from AARP, an advocacy group for the over 50s, found that 76 percent of Americans aged 50 and older believe a projected 3.5 percent increase in benefits for 2027 would not adequately compensate for rising living costs. Among current Social Security recipients, that figure rose to 80 percent.
Meanwhile, 71 percent of respondents said an increase of between 5 and 8 percent would be sufficient to help beneficiaries afford everyday expenses. Across political affiliations that view was fairly consistent, with 73 percent of Democrats, 70 percent of independents and 69 percent of Republicans saying the same. The survey, conducted among 1,023 adults between September 17 and 21, comes as the Social Security Administration (SSA) prepares to announce its annual COLA on October 14.
Current estimates suggest benefits could rise by approximately 3.6 percent in 2027; it could deliver the largest increase since the 8.7 percent adjustment in 2023. However, even a comparatively large increase may provide limited relief for older Americans who have struggled with this year's rising cost of essential expenses. Although the annual COLA is intended to protect Social Security beneficiaries from inflation, the increase does not necessarily reflect the financial pressures experienced by individual retirees, experts say.
Geoffrey Schmidt is a certified public accountant, registered Social Security analyst and founder of Holy Schmidt! He told Newsweek the adjustment should be viewed as compensation for rising prices rather than additional income. "A 3.5 percent increase isn't a raise; it's reimbursement for inflation that has already occurred.
And, even as the biggest increase in four years, it isn't a windfall for anyone," Schmidt said. "At a 3.5 percent increase, the average payment increases about $70. "This becomes even more obvious if the recipient's other sources of income have not kept pace with inflation.
A corporate pension, for example, usually is not adjusted for inflation." The latest Bureau of Labor Statistics data, published in September, shows consumer prices rose 3.4 percent over the 12 months ending in August 2026. Energy costs increased 16.3 percent over the same period, while food prices rose 2.7 percent and shelter costs increased 3 percent. For retirees living on relatively fixed incomes, these increases can place pressure on household budgets, particularly when spending is concentrated on necessities.
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