How can Social Security COLAs impact reverse mortgage planning?

Recent estimates show that Social Security recipients could receive a larger-than-usual cost-of-living adjustment (COLA) in 2027. But seniors — including homeowners seeking to tap their home equity through products like reverse mortgages — may want to rethink their strategy for claiming benefits. The Senior Citizens League recently projected that program benefits could rise 3.6% in 2027, which would be the largest increase in four years. The official adjustment will be announced Oct. 14 based on inflation data from July through September. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was up 3.4% year over year in July, prompting the senior advocacy organization to up its estimates as inflation is expected to rise modestly in the next two months. The 3.6% COLA, if it comes to fruition, would raise the average Social Security benefit by $69.75, pushing it to roughly $2,007. But an article published Thursday by CNBC explains that most Americans are better off waiting to claim Social Security, even when the cost-of-living adjustment is relatively high. Social Security recipients got a 2.8% bump in 2026, but a 3.6% increase next year would be the largest s...