Social Security COLA For 2027 Revealed: Here's How Much More CT Seniors Will Get

Older adults and people with disabilities in Connecticut will get another $75 a month beginning in 2027 under a 3.6 percent cost-of-living adjustment announced Wednesday by the Social Security Administration.

The increase — which some recipients say is not enough to cover soaring costs — will affect some 73 million Social Security recipients and nearly 7.5 million beneficiaries who get Supplemental Security Income.

That will raise average monthly benefits $2,095 to $2,170. Higher payments begin in January, although increases in Medicare premiums could consume some of that additional money.

In Connecticut, 765,437 people people are Social Security beneficiaries, and another 66,312 people receive SSI. About 20.8 percent of Connecticut's population receives benefits. Among residents aged 65 or older, 85.7 percent receive benefits.

The announcement comes as inflation adds pressure on household budgets and businesses and as midterm elections are weeks away.

The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary. That is set to increase to $192,300 in 2027, from $184,500 in 2026.

The agency's commissioner, Frank Bisignano, said in a statement that the adjustment will give recipients “greater financial stability.”

Older Adults Feel Squeezed

Some older adults feel the increase is a drop in the bucket as inflation has eaten away at monthly savings. The September inflation report released Wednesday showed consumer prices rose 3.7 percent over the past year, up from 3.4 percent in August.

Gasoline prices jumped 34.2 percent over the year, while shelter costs increased 3.2 percent, food prices rose 2.5 percent and medical care costs continued to climb. Rising prices for necessities are particularly challenging for retirees who have limited opportunities to increase their incomes.

Lorrie Ufkin, a 71-year-old retiree living near Rochester, Minnesota, said the COLA fails to address her escalating health care expenses. These costs are expected to rise further at the end of the year as the Trump administration phases out a temporary Medicare Part D subsidy program designed to soften premium increases.

Ufkin said that her premiums and drug costs are also expected to rise, although the Centers for Medicare & Medicaid Services has projected a modest increase for most people.

The COLA “doesn't even meet what they're going to do for changes to Medicare,” she told The Associated Press.

She said one of the medications both she and her husband take will go from $11 per month for each prescription, to $200 per month, after Republican administration changes made to older Americans' healthcare programs. She said that was “catastrophic.”

20% Have No Retirement Savings

Senior advocacy groups highlight the COLA as a sign of older Americans' financial strain.

“There’s a lot on the line financially right now for older Americans — one in five have no retirement savings, and more people feel financially insecure this year than last. That makes Social Security's cost-of-living adjustment critically important,” AARP CEO Dr. Myechia Minter-Jordan told The AP.

Jaime Jakubczak, 68, of Buffalo, New York, retired at 55 but returned to work to cover rising property taxes. He called the 3.6 percent COLA “a pittance,” saying high inflation, steep food and gas prices, and a local tax hike swallow it.

“We were getting ahead a little bit with the COLA based on inflation, but the inflation is so high that it doesn’t offset what our COLA allowance is,” he told The AP.

A September AARP poll shows most older adults agree: roughly three-quarters aged 50+ doubted a 3.5 percent 2027 COLA would keep pace with rising costs.

Social Security Faces Funding Shortfall

Social Security faces a funding shortfall that could reduce benefits unless Congress acts. According to the 2026 trustees' report, the combined retirement and disability trust funds are projected to run out of reserves in 2034. After that, incoming revenue would cover about 83 percent of scheduled benefits.

The outlook is more urgent for retirees. The trust fund that pays retirement and survivor benefits is projected to exhaust its reserves in 2032, leaving enough revenue to cover just 78 percent of promised payments. Benefits would not disappear, but recipients could face substantial cuts.

Congress has yet to agree on a solution. One proposal would eliminate the cap on earnings subject to Social Security payroll taxes, requiring higher earners to contribute more. The Peterson Foundation estimates the change could generate roughly $3 trillion over 10 years.

Recent legislation has also affected Social Security's finances. A law signed by President Joe Biden in January 2025 expanded benefits for about 2.8 million former public workers, while President Donald Trump's 2025 tax law provided temporary tax deductions for eligible adults 65 and older. Both measures improved finances for some older Americans but added to the program's long-term funding pressures.

The Associated Press contributed to this report.