RESOLVING THE LEDGER
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Projections are a funny thing. What seems like a sure bet can morph into something entirely different in the blink of an eye. For example, for weeks, the news has been that Social Security recipients can expect a 3.9% cost-of-living adjustment (COLA) in 2027. Now, new government inflation data indicate that the COLA is likely to be lower than that number, thanks to this summer's slight slowdown in inflation.
While everyone seems to agree that 2027's COLA will be higher than the 2.8% increase of 2026, their latest predictions of where the COLA will land are all over the place. For example:
According to CRFB, high COLAs may provide helpful near-term support to seniors. However, they impose high costs for a retirement fund that is only six years away from insolvency.
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