Social Security COLA 2027 could raise retirees' checks by $77 a month as experts push for formula change

Social Security retirees are projected to receive a 3.8% COLA in 2027, raising the average monthly benefit by about $77 to $2,103.41.

The increase still leaves retirees about $597 short of estimated average monthly living expenses of $2,700 for older Americans.

The Senior Citizens' League is urging Congress and the US president to replace the current CPI-W formula with CPI-E, which tracks spending habits of older Americans.

COLA is currently based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing average readings from July, August, and September each year.

The CPI-W measures price changes for a fixed basket of goods, but critics say it does not reflect retirees' actual expenses like healthcare and housing.