t may still be early in 2026, but attention is already turning toward next year’s Social Security cost-of-living adjustment, often called COLA. The latest estimate suggests that the 2027 increase could be modest, and many seniors are worried that it may not be enough to keep up with rising expenses.

A recent projection from The Senior Citizens League, a nonpartisan advocacy group focused on older Americans, estimates that the 2027 COLA could be around 2.8 percent. While this figure is slightly higher than the group’s previous forecast of 2.5 percent, it matches the 2.8 percent increase that beneficiaries received in 2026. For many retirees, that level of increase has already felt insufficient.

How the COLA Is Calculated Each Year

The annual Social Security COLA is designed to help benefits keep pace with inflation. It is calculated using a specific inflation measure known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. This data is collected during the third quarter of each year, covering July, August, and September. The average CPI-W during those three months is compared to the same period in the previous year. The percentage difference becomes the COLA for the following year.

Because the final calculation depends on inflation data that has not yet been recorded, the 2027 estimate could still change. There are several months left before the official number is announced. However, early projections give seniors and financial planners an idea of what to expect.

In 2026, the 2.8 percent COLA increased the average monthly Social Security payment by about $56. While any increase can help, many retirees say it has not kept up with the rising costs they face in everyday life.

Why Some Seniors Feel the Increase Is Not Enough

Even if the 2027 COLA remains at 2.8 percent, many older Americans believe it will not fully cover their higher expenses. According to leadership at The Senior Citizens League, the current inflation measure may not reflect the true cost increases that seniors experience. Retirees often spend a larger share of their income on healthcare, housing, and prescription drugs, areas where prices have been rising quickly.

Shannon Benton, Executive Director of The Senior Citizens League, has said that many seniors feel frustrated by the way inflation is calculated. In her view, the CPI-W may underestimate the real-world inflation that older Americans see when they shop for groceries, pay medical bills, or cover utility costs. As a result, a modest COLA can feel like it falls short.

The word “affordability” has become central in conversations about retirement security. Many retirees live on fixed incomes and have limited ability to increase their earnings. When prices rise faster than benefits, seniors often have little choice but to reduce spending.

Healthcare Costs Continue to Rise Faster Than Benefits

One of the biggest financial pressures facing seniors is healthcare. Medicare Part B premiums have been increasing at a faster pace than Social Security benefits. In 2026, the Medicare Part B premium rose by 9.7 percent, increasing from $185 to $202.90 per month. This jump was more than three times the 2.8 percent COLA.

When Medicare premiums rise faster than Social Security benefits, much of the COLA increase can be absorbed by higher healthcare costs. This leaves retirees with little additional money to cover other essential expenses.

In addition, Medicare Part B does not cover certain services such as routine dental care, hearing aids, and vision services. Seniors who need these services must either purchase additional coverage through Medicare Advantage plans, buy private insurance, or pay out of pocket. For many people on limited incomes, these extra costs can be difficult to manage.

Many Seniors Are Skipping Medical Care to Save Money

Research cited by The Senior Citizens League shows that a significant number of seniors have delayed or skipped healthcare services because of cost concerns. More than half of seniors reported skipping at least one healthcare product or service in the past year to reduce expenses. Among financially insecure seniors, that percentage is even higher.

Dental care is one of the most commonly skipped services. Vision and hearing care are also frequently postponed or avoided. These decisions can have serious long-term consequences. Regular dental checkups can prevent more expensive treatments later. Vision and hearing issues, if untreated, may affect overall health and quality of life.

Healthcare experts have also pointed out that hearing and vision loss can be linked to cognitive decline. This means that limited access to these services could have broader health implications for older adults.

The Bigger Picture for Retirement Security

Social Security remains the main source of income for millions of Americans. The Social Security Administration distributes monthly payments to retirees, disabled workers, and survivors. For many households, these payments make up the majority of their income.

When COLAs are small, seniors may struggle to keep up with rising living costs. Although inflation has slowed compared to previous years, prices for essentials such as food, rent, utilities, and healthcare remain high. Even small price increases can strain a fixed budget.

At the same time, policymakers continue to debate long-term solutions for strengthening the Social Security system. While those discussions focus on future funding challenges, current retirees are more concerned about whether their monthly checks will cover their daily needs.

What Seniors Can Do Now

Although the official 2027 COLA will not be announced until later in the year, retirees can begin reviewing their budgets and planning ahead. Understanding how rising healthcare costs affect overall finances is an important step. Exploring available assistance programs, comparing insurance options, and seeking financial advice may help manage expenses more effectively.

Staying informed about official announcements from trusted sources can also help avoid confusion or misinformation. While projections provide guidance, the final COLA will depend on actual inflation data in the coming months.

Conclusion

The early estimate of a 2.8 percent Social Security COLA for 2027 has sparked concern among many seniors. While the increase would match the 2026 adjustment, rising healthcare costs and everyday expenses may continue to outpace benefit growth. As Medicare premiums and other essential costs rise, retirees may feel that modest increases do not go far enough. The months ahead will determine the final adjustment, but for now, many older Americans remain focused on making their budgets stretch in an uncertain economic environment.

Disclaimer: This article is for general informational purposes only and does not constitute financial, legal, or professional advice. Estimates and projections may change as new data becomes available. Individuals should consult official government sources or qualified financial advisors for guidance specific to their personal situation.