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Projected 2027 Social Security COLA could reshape reverse mortgage timing
The Senior Citizens League projects a 3.6% 2027 COLA, which it estimates would lift the average benefit by $69.75 to about $2,007, potentially affecting when borrowers draw HECM line-of-credit proceeds.
HousingWire reports that the Senior Citizens League projects a 3.6% Social Security cost-of-living adjustment for 2027, with the official update due Oct. 14 based on CPI-W inflation data for July through September.
The article notes that higher future Social Security income and the related dynamics of Home Equity Conversion Mortgage, or HECM, line-of-credit growth can influence reverse mortgage borrowers’ decisions about when to claim benefits and when to draw loan proceeds.
HousingWire adds that its referenced analysis highlights how COLA expectations can create pressure to claim Social Security sooner, even though experts argue the bigger issue is planning for a potentially longer retirement, so the timing decision should consider longevity rather than COLA size alone.
The Senior Citizens League’s projection also cites recent inflation trends, including CPI-W up 3.4% year over year in July, and says a 3.6% COLA would be the largest benefit increase in four years, following a 2.8% bump in 2026.