"Seniors who get most or all of their retirement income from Social Security tend to rely on the program's annual cost-of-living adjustments, or COLAs, in a really big way. Without those COLAs, seniors would be pretty much guaranteed to lose out on buying power from year to year."
"The conflict overseas began in late February. Shortly after it started, Iran moved to close the Strait of Hormuz - a critical passageway responsible for a vast amount of oil and gas shipments. That closure has driven the price of oil up significantly."
"In March, the Consumer Price Index showed a 3.3% year-over-year increase. Because Social Security COLAs are tied to inflation, these cost increases could potentially be setting the stage for a larger boost in 2027."
Seniors relying on Social Security face challenges without annual cost-of-living adjustments (COLAs). The 2026 COLA was 2.8%, but inflation driven by the Iran conflict may influence future adjustments. The closure of the Strait of Hormuz has led to rising oil prices, increasing gas prices and overall inflation. The Consumer Price Index showed a 3.3% year-over-year increase in March, suggesting potential for a larger COLA in 2027. Estimates for the 2027 COLA vary, with some analysts predicting it will remain at 2.8%.
Read at 24/7 Wall St.
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