If you're on Social Security, you may be excited for January to arrive. At that point, benefits are expected to rise by 3.6% as the 2027 cost-of-living adjustment, or COLA, takes effect. Given that 2026's Social Security COLA only came in at 2.8%, a 3.6% increase reads like a welcome change. But due to a flaw in the way Social Security COLAs are calculated, a 3.6% raise may not help you keep up with inflation in the new year after all. Image source: Getty Images.
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