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Social Security’s cost-of-living adjustment is projected to remain unchanged from 2026, as a new proposal to cap benefits at $50,000 per person fuels debate over how to shore up the program’s finances, according to nonprofit.
By the numbers:
Using newly released CPI data, The Senior Citizens League (TSCL) estimates that Social Security’s 2027 cost-of-living adjustment (COLA) will come in at 2.8%—unchanged from 2026.
That increase would raise the average monthly benefit for retired workers by about $56.69, from $2,024.77 to $2,081.46.
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At the same time, lawmakers are considering ways to address Social Security’s long-term funding gap, which could trigger benefit cuts of roughly 24% by 2032 if no action is taken, according to the league.
One proposal from the Committee for a Responsible Federal Budget, known as the "Six Figure Limit," would cap benefits at $50,000 per individual, or $100,000 per couple, and is projected to eliminate about three-fifths of the program’s shortfall over the next 75 years.
The plan, however, is expected to face significant resistance from older Americans. Because it would effectively reduce benefits for some recipients, TSCL research shows strong opposition among seniors, with 95% against cuts for current retirees and 66% opposing reductions for future beneficiaries.
What they're saying:
"Rather than cutting benefits for people who have paid into the system their entire working lives, we should focus on strengthening America’s pension system," said Shannon Benton, executive director of The Senior Citizens League. "Seniors tell us their benefits aren’t going as far as they used to, and many younger workers worry the program will be a shadow of itself by the time they retire, even as their taxes fund benefits today."
Consumer price index
Big picture view:
Gas prices pushed inflation up in March in the biggest year-over-year increase since May 2024, according to the U.S. Bureau of Labor Statistics’ data.
RELATED: Consumer sentiment plummets as inflation fears surge
By the numbers:
Consumer prices were up 3.3% last month compared to March 2025.
Compared to February 2026, consumer prices in March jumped 0.9% – the biggest gain in nearly four years.
Dig deeper:
As the war in Iran drives up fuel costs, the cost of gasoline accounted for the biggest price increase for Americans in March. Gasoline costs went up more than 21% since February, and were up nearly 19% since the year prior.
The Associated Press reported it was the largest monthly jump in gas prices in six decades.
RELATED: Fuel and fertilizer prices could stay high for ‘a prolonged period,’ IEA head warns
Bottom line:
The gas price shock has shifted inflation’s trajectory from a slow, gradual decline to a sharp increase further away from the Fed’s 2% target.
A customer filling their vehicle with fuel at a gas station, with the Consumer Price Index from 2016 - March 2026 overlaid on top. Gas prices hikes due to the war in Iran sent inflation soaring in March 2026. (Getty Images)
Inflation 2026
Big picture view:
March saw the biggest inflation jump so far this year.
In January and February, prices were up 2.4% since the year before. And those prices were slightly down from the end of 2025, when prices were up 2.7% since the end of 2024.
War in Iran and gas prices
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Meanwhile:
The war and its impact on inflation will play out in the coming months remains highly uncertain.
President Donald Trump said recently that gas prices may remain elevated before the midterm elections in November. The national average for gas in the U.S. was slightly over $4 a gallon at the time of his interview.
RELATED: Trump admits gas prices could remain high through November elections
What's next:
A big question for now is how long the oil and gas price shock lasts and whether it will lead to a broader, long-lasting inflation boost, similar to what occurred in the spring of 2022 after Russia invaded Ukraine.
For now, economists say that it is unlikely the U.S. will see a widespread increase similar to a few years ago, when inflation topped 9%.
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The Source: Megan Ziegler contributed to this report. The information in this story comes primarily from The Senior Citizens League (TSCL), which provided the 2027 COLA estimate, benefit projections, and polling data on seniors’ views, as well as from the Committee for a Responsible Federal Budget, which outlined the proposed "Six Figure Limit" plan. Additional economic context, including inflation trends and gas price increases, is based on data from the U.S. Bureau of Labor Statistics and reporting from The Associated Press. This story was reported from Los Angeles.