2027 Social Security COLA estimate is out — should someone 20 years from retiring actually care?
I keep seeing headlines about the 2027 Social Security COLA adjustment (search interest is up 900%). I'm 45, nowhere near retirement. Is there any reason to pay attention now — does the COLA math change anything about how much I should be saving, or is this pure noise until I'm closer? What I've considered: just bumping my 401k contribution by the inflation rate each year and calling it done. Is that the right move, or am I missing something real?
1 answer
- SSA's benefit estimator at ssa.gov
Forget the headlines. Go to ssa.gov and run their benefit estimator twice — once with your current earnings, once bumped up. Five minutes, real dollar numbers instead of a scary percentage. I did this last year and learned an extra $10k a year of earnings barely moved my payout because of how the bend points work. That's the only thing worth knowing 20 years out: how your payout is calculated, not the annual adjustment.