A Sizable "Trump Bump" for Social Security's 2027 COLA May Put America's Leading Retirement Program in Dire Straits
The (projected) fifth-largest raise in the last 36 years could accelerate the timeline to sweeping benefit cuts.
Overview
Making history is something America's leading retirement program, Social Security, does on a fairly regular basis. Last year, the average monthly retired-worker benefit surpassed $2,000 for the first time since the Social Security Act was signed into law in August 1935.
In 2027, Social Security payouts are set to make history, once again, courtesy of President Donald Trump. The president's policies are expected to deliver an outsize "Trump bump" to Social Security's 2027 cost-of-living adjustment (COLA) -- i.e., the "raise" passed along annually to help beneficiaries offset the effects of inflation.
Details
But one of the largest projected raises since the early 1990s will come at a potentially steep cost to Social Security and its current/future beneficiaries.
Source
Originally published at www.fool.com.