A potential 3.2% to 3.6% Social Security COLA for 2027 puts retiree spending power back in focus, and that can ripple through everything from grocery aisles to medical appointments. If more cash reaches seniors each month, some companies tied to older consumers could see fresh attention from investors. This article walks through three stocks exposed to that COLA story and explains why each deserves a closer look right now.

The three stocks below are just a starting sample, and the full screen surfaced 20 more U.S. retiree-focused consumer and healthcare companies with similarly compelling stories that are not covered here. To identify and analyze those additional candidates, head straight to the U.S. Retiree-Focused Consumer and Healthcare Stocks screener.

Kroger (KR)

Overview: Kroger is one of the largest U.S. food and drug retailers, running supermarkets, multi-department and marketplace stores, price-focused warehouse formats, fuel centers and online platforms that cover everything from groceries and prescriptions to apparel, home goods and toys.

Operations: Kroger generates about US$148.6b in revenue from its retail operations, all of it in the United States.

Market Cap: US$34.3b

For investors watching how higher Social Security checks could feed into everyday spending, Kroger sits in the path of that extra retiree income through groceries, prescriptions and household basics. The company is focusing on e-commerce, AI tools and health programs like its GLP-1 support offering, which could deepen its link to older shoppers. It is also closing about 60 underperforming stores and investing heavily to improve efficiency. At the same time, thin margins, high debt, recent one-off losses and insider selling highlight the risks investors may wish to consider. The company’s performance will depend in part on how effectively it manages its digital initiatives and private label strategy.

Kroger’s push into e-commerce, AI tools and health programs could be masking what really matters for long term returns. Get the full picture in the 4 key rewards and 4 important warning signs

Build your own retiree spending shortlist

Kroger and the two other stocks in this list all came out of a single screener, but the real edge is shaping your own filters around retiree demand, balance sheet strength and income potential. Use our flexible Screener to set your own rules, or tap into ready-made themes through our Investing Ideas.

Colgate-Palmolive (CL)

Overview: Colgate-Palmolive is a global consumer products company that sells everyday essentials such as toothpaste, soaps, shampoos, household cleaners and pet food under brands like Colgate, Palmolive, Softsoap, Ajax and Hill’s. Its products reach shoppers through supermarkets, pharmacies, eCommerce platforms, dentists, skin health professionals and veterinarians.

Operations: Colgate-Palmolive generates about US$4.7b from Pet Nutrition, around US$5.1b from Oral, Personal and Home Care in Latin America, roughly US$4.0b from North America, about US$2.9b from Asia Pacific, plus a US$4.3b segment adjustment.

Market Cap: US$73.6b

Colgate-Palmolive sits squarely in the retiree spending story because it sells non discretionary oral care, personal care and pet products that older households buy on repeat, so a higher Social Security COLA could support steadier demand. The company also has exposure to emerging markets and Hill’s Pet Nutrition, which analysts describe as important sources of organic sales growth, even as North America remains softer and cost inflation keeps pressure on margins. At the same time, investors may consider a high P/E, heavy use of debt and a recent US$1.2b one off loss alongside its long record in daily essentials, ongoing productivity efforts and margin improvement work when assessing whether any valuation premium is justified.

Colgate-Palmolive’s everyday essentials story can look simple, yet its mix of premium brands, emerging markets and pet nutrition may be telling a different growth story. Get the full analyst forecasts for Colgate-Palmolive before judging whether that higher P/E is really the whole story

Walmart (WMT)

Overview: Walmart is a global retailer that runs supercenters, supermarkets, Sam’s Club warehouses and ecommerce platforms, selling everything from groceries and medicines to electronics, apparel, home goods and financial services across its stores, websites and mobile apps.

Operations: Walmart generates about US$490.9b in revenue from Walmart U.S., roughly US$137.4b from Walmart International, about US$96.9b from Sam’s Club and around US$72m from Corporate and Support.

Market Cap: US$923.2b

Walmart sits right in the path of a higher 2027 Social Security COLA because it combines low priced groceries, pharmacy services and budget friendly general merchandise with strong senior foot traffic. Earnings growth of 20.8% over the past year, a 5 year earnings growth rate of 17.1% and ROE around 22.9% indicate a business that has been converting that reach into solid profitability, helped by its fast growing ecommerce, Walmart Connect advertising and membership income. The flip side is a rich valuation, high debt and recent insider selling that leave less room for error if higher costs, tariffs or weaker consumers bite into margins. Anyone building a retiree spending watchlist may want to see how that trade off between quality and price compares against other options.

Walmart’s combination of strong recent earnings growth and rich valuation suggests investors may be missing a key twist in the story. Get the full analysis report for Walmart

Seeking Alternatives Before Others Catch On

Fresh ideas move first. Some stocks are showing early signs of momentum while many investors may still be looking elsewhere.

• Explore higher income potential with a curated group of companies labelled as 11 dividend fortresses that may appeal if you are watching cash flow and payout strength.
• Look for under the radar growth stories by scanning a hand picked 18 high quality undiscovered gems that focuses on quality fundamentals while the broader market pays less attention.
• Focus on financial resilience using a list of solid balance sheet and fundamentals (49 results) and quickly filter for companies that keep debt, liquidity and profitability in tighter shape.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.