Social Security increase may not match rising costs

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Concept art showing the United States of America capitol building, Social Security cards, and currency overlaid.

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(Greater Dakota News Service)
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South Dakotans receiving Social Security benefits will get more money next year but it may not be enough to keep up with rising prices.

The Social Security cost-of-living adjustment will be 3.6% in 2027, as inflation rose 3.7% in September.

Erik Gaikowski, state director of AARP South Dakota, stressed Social Security is a vital safety net helping keep many seniors out of poverty.

"We know that roughly 20% of South Dakotans that are on Social Security are utilizing it for almost their entirety of their retirement finances. So it makes a huge difference, these COLA adjustments and it's important for those to keep pace with inflation," Gaikowski stressed.

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Notebook with a pen on a page showing a personal budget. Underneath are paper currency and tax forms. Eyeglasses are nearby
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The Social Security Administration said payments will go up $75 a month on average. U.S. Census Bureau data show more than 10 million people age 65 and older lived below the poverty line in 2025, a 6% increase since 2020 and the largest of any age group.

Ahead of the November election, AARP polling finds affordability is the top concern for low-income earners age 50 and older, with 90% saying rising prices are among their biggest financial problems, and nearly a third said their households ran out of food before they had money to buy more.

Gaikowski argued because older voters make up a majority of the electorate, politicians need to keep the demographic group in mind.

"Nine in 10 older voters are more likely to vote for a candidate who will fight to protect and strengthen Social Security. When we ask our members, they tell us they want to elect candidates who will address their day-to-day challenges, like caring for loved ones, protecting their hard-earned Social Security," Gaikowski outlined.

Gaikowski added his organization has a voting information page on its website to help people figure out where, when and how to vote.