Wisconsin Retirees to Receive Social Security Increase in 2027 Amid Rising Costs

However, the COLA may not fully offset the rising costs for essentials like food, gas, and housing due to inflation. Recent Consumer Price Index data indicates a 3.7 percent increase in costs year-over-year as of September.

Devon Christianson, director of Brown County’s Aging and Disability Resource Center, noted that the COLA is calculated based on price data from earlier in the year, which sometimes leads to a lag in adjustment concerning actual expenses. “COLA doesn’t equate to financial security,” she stated, emphasizing that rising housing costs, food prices, and medical expenses are straining many older adults.

Lindsay Jacobs, assistant professor at the La Follette School of Public Affairs, pointed out that the expenses retirees face don't always align with the COLA calculations. While some retirees benefit from pensions or 401(k) plans, many rely solely on Social Security. This financial pressure often leads retirees to either delay retirement or return to the workforce to supplement their income.

“People are making choices that are really difficult,” Christianson remarked, highlighting that their decisions often revolve around basic necessities rather than discretionary spending.

Next year, Medicare premiums are also projected to rise, potentially offsetting any gains from Social Security adjustments, according to Jacobs. Before the upcoming increase, the average Social Security check is around $2,100 per month.

Concerns about the long-term financial viability of Social Security persist. The Congressional Budget Office forecasts that the trust fund responsible for retirement benefits may deplete its resources by 2032 if Congress does not take action. Jacobs warns that without intervention, beneficiaries could face cuts of at least 20 percent.

“We’re already taking in less than we’re paying out in benefits,” Jacobs added, stressing the urgency to prevent a sudden drop in support for the 80 million beneficiaries expected in the future.

For assistance, Christianson encourages individuals to check the Department of Health Services’ Aging and Disability Resource Center (ADRC) listings to find available programs in their area. Local ADRCs can help older adults explore options to reduce expenses related to healthcare and housing.