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Inflation Data Points to Another 2.8% Social Security COLA as AARP Flags Strained Buying Power

Higher prices plus a larger Medicare Part B premium are shrinking the value of recent benefit increases.

Overview

  • New inflation readings led The Senior Citizens League to project a 2.8% cost‑of‑living increase for 2027, matching this year’s adjustment.
  • AARP cautioned that the 2.8% raise for 2026 may offer only a small cushion if prices keep rising, pressuring household budgets.
  • Medicare’s standard Part B premium rose to $202.90 a month, and the higher charge is taken out of Social Security checks before deposit.
  • The Social Security Administration bases retirement benefits on a worker’s 35 highest earning years, and the program is built to replace about 40% of pay.
  • A worker who earned about $40,000 a year could expect roughly $1,300 to $1,400 a month at full retirement age, with earlier or later claims shifting payments to about $1,300 to $1,800.