In 2027, Social Security retirees will receive a 3.6% raise. This benefit increase comes from the annual cost-of-living adjustment (COLA). Social Security cost-of-living adjustments are built into the program to help protect the buying power of benefits. Without COLAs, inflation would erode the real value of Social Security. These COLAs are announced in October of the previous year, and many people eagerly await the news of the raise. The reality, however, is that a 3.6% raise doesn't have much positive impact on retirees -- especially given that the COLA is calculated based on a measure of inflation, so the goal is just to maintain buying power, not increase it.
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