The Social Security Administration announced a 3.6% benefit increase for 2027 on Oct. 14. The cost-of-living adjustment is critical at a time when one in five older Americans has no retirement savings to rely on.
Scott Wegenast, communications manager for AARP Kentucky, said more households feel financially insecure compared to last year.
"Too many older Americans are still feeling like they're falling behind, and that can be from prescription drug costs increasing, utilities on the increase, fuel prices, grocery prices," Wegenast outlined.
Nationwide, adults age 50-plus agreed a 3.5% increase would be insufficient to keep up with rising prices, but the majority said an increase between 5% and 8% would be sufficient for affording everyday expenses, according to results from an AARP survey released just days before the administration’s announcement.
Wegenast stressed that advocates continue to work to shore up Social Security for decades to come.
"Part of our work is to make sure that Congress takes action to ensure Social Security is there for today's retirees and for generations still paying into Social Security out of every paycheck," Wegenast emphasized.
The Social Security Trust Fund is projected to run out of reserves by late 2032, at which point incoming payroll taxes will cover only 78% of participants' benefits.
