Social Security COLA Projections Drop for July

Based on the latest data from the Senior Citizens League, the cost-of-living adjustment (COLA) forecast dropped by 0.2% in July (from a 3.8% COLA increase in June to a 3.6% projection for July). This projection would result in an average benefit increase of about $75 per beneficiary. Many forecasters predict that the COLA could change depending on whether oil prices drop ahead of the official October release. The COLA projection jumped significantly from 2.8% in March to 3.9% in April and has held relatively steady since that point. While inflation generally fell from 3.5% to 3.4% in July, the index for housing (shelter) rose by 0.1% and the index for food also increased by 0.1%. Notably, Medicare costs will also increase in 2027 (Medicare premiums are typically deducted directly from Social Security). For more information on how these and other standards are indexed for inflation, visit Tax Facts Online. Read More: Link to Q8512.