Social Security recipients will receive larger monthly payments beginning in January, but an advocate for older Hoosiers says the increase may not be enough to keep pace with rising living costs.
Benefits will increase by 3.6% in 2027, giving the average retired worker about $75 more per month, or roughly $900 over the year. Nearly 72 million people will receive higher Social Security payments, while Supplemental Security Income recipients will see the increase beginning Dec. 31.
Jason Tomcsi, communications director for AARP Indiana, said the increase will help people facing higher costs for groceries, utilities and health care.
“The adjustment is welcome news for Hoosiers facing higher prices, but our data does show that most people feel that they would need a 5% to 7% increase just to keep up with inflation,” Tomcsi said.
He said rising expenses can make it difficult for older adults living on fixed incomes to cover their basic needs.
“Everything’s more expensive, and so any little bit is going to help, but whether or not it’s going to be enough, I don’t know,” Tomcsi said.
How much the increase helps will depend on each recipient’s financial situation, he said. Some may use the additional money for groceries or utility bills, while others may need it for medical expenses.
Tomcsi said more than one in five Indiana residents receives some form of Social Security benefits, making the annual adjustment important to households across the state.
He also emphasized the importance of maintaining annual cost-of-living adjustments, known as COLAs, as recipients face rising expenses.
“The proposal that maybe people are pushing that would cut or reduce Social Security is not something that Hoosiers want,” Tomcsi said.
