The Social Security Administration projected that the annual cost-of-living adjustment for seniors and disabled individuals will increase by 3.6% starting in January 2027, translating to approximately $75 extra per month for nearly 72 million beneficiaries. This adjustment is funded by payroll taxes collected from workers and employers, with the annual salary cap rising to $192,300 in 2027. Inflation accelerated in September, with the consumer price index rising 3.7% year-over-year, fueling criticism that the adjustment fails to offset soaring prices. Social Security’s combined trust funds are projected to become unable to pay full benefits starting in 2034, covering only about 83% of scheduled benefits thereafter.
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