Here's How Much Social Security's Trump Bump-Driven 2027 COLA Is Projected to Boost Benefits
Beefier Social Security payouts are on the horizon for more than 71 million traditional beneficiaries.
Overview
For the overwhelming majority of the more than 71 million traditional Social Security beneficiaries (retired workers, workers with disabilities, and survivors of deceased workers), few announcements are more anticipated than the annual cost-of-living adjustment (COLA) reveal.
Social Security's COLA is best described as an annual raise passed on to recipients to offset the effects of inflation. If, for example, the cost for a broad basket of goods and services regularly purchased by seniors increased by 3% from one year to the next and benefits remained static, recipients' buying power would decline.
Details
This highly anticipated Social Security raise is announced in mid-October by the Social Security Administration and is determined by inflation data from July through September. With one month of critical inflation data already in the books, estimates are narrowing as to how much benefits will increase in 2027.
Source
Originally published at www.fool.com.
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