Why to delay claiming Social Security — even when COLAs are high
New estimates show the Social Security cost-of-living adjustment for 2027 may be up to 3.6%. Retirees may benefit from the boost even if they wait to claim.
The Social Security cost-of-living adjustment (COLA) is a crucial factor for retirees, as it directly impacts their benefits. With estimates suggesting a potential 3.6% COLA for 2027, some retirees may be inclined to claim their benefits sooner to maximize the increase. However, experts advise that delaying claims can still be a viable strategy, even with a high COLA.
Delaying Social Security claims can result in a higher monthly benefit amount, which can provide a hedge against inflation and ensure a more sustainable income stream in retirement. This is particularly important, as the COLA increase, although welcome, does not necessarily address the long-term sustainability of Social Security benefits. By waiting to claim, retirees can lock in a higher benefit amount, which can be adjusted annually based on the COLA.
To watch next: The actual COLA announcement for 2027, expected in October 2026, and how it compares to current estimates. Additionally, retirees should consider their individual financial situations, life expectancy, and other sources of income when deciding when to claim Social Security benefits. It is essential to weigh the pros and cons of delaying claims versus taking benefits sooner, and to consult with a financial advisor if needed.
Originally reported by cnbc.com. OptionNews adds analysis for finance & markets readers.