2027 Social Security COLA Smaller Than You'd Hoped? Here's What to Do Now

The Social Security Administration has announced a 3.6% cost-of-living adjustment (COLA) for 2027. This is above average compared with the last 50 years of COLAs, and it's expected to add roughly $75 per month to the typical retirement benefit.

That will give the average senior about $900 more per year, but it might be less than what you were hoping for. It's possible you will get a larger benefit boost if your current checks are above average. But if not, you may have to resort to the following moves listed below to pay for what Social Security won't provide next year.

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Rely more heavily on personal savings

The most straightforward option if you have substantial personal savings is to withdraw more from your retirement accounts to supplement your Social Security benefits. Add 3.6% to your current Social Security checks to get a rough idea of how much more you'll get from the program next year. Then, subtract this amount from your average monthly expenses to see how much you'll need from your personal savings.

If you're concerned about running out of savings prematurely, review your budget to identify areas where you could cut back on spending. When this isn't feasible, you may have to try the other strategies listed here.

Consider a part-time job

Working in retirement may not be how you'd envisioned this chapter of your life, but it can give you a steady source of income to supplement your personal savings and your Social Security benefits. Some people also enjoy the sense of purpose and the chance to socialize that a job gives them.

You don't have to work in the same career you spent your life in. You're free to choose something more in line with your interests or with a flexible schedule that fits your lifestyle. Even if it only covers half your monthly expenses, that could help you stretch your personal savings over several more years.

Apply for other government benefits

If working isn't an option for you and your personal savings aren't enough to cover your costs, you may need to look into other government benefits to cover your expenses in 2027. There are programs that can help you pay for essentials like housing, groceries, utilities, and healthcare, so you can reserve your savings for expenses that fall outside of these categories.

Applying and getting approved for these benefits can take time, so it's best to start the process now if you expect to need them next year. Reach out to your state social services agency to learn what types of benefits might be available to you.

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