In 4 Days, Social Security's Trump Bump-Led 2027 COLA Should Produce its First Silver Lining Since 2023 for Tens of Millions of Retirees
A potential tie for the sixth-largest Social Security raise since 1993 is only part of the story for retirees.
Overview
For a majority of retirees, Social Security income is a necessity to make ends meet. According to a quarter-century of Gallup surveys, up to 90% of retirees rely on their monthly Social Security check to cover at least some portion of their expenses.
Given how important Social Security income is to retirees' financial well-being, arguably no announcement is more anticipated than the annual cost-of-living adjustment (COLA) reveal. In just four days, on Oct. 14, the September inflation report will be published, providing the final puzzle piece to calculate Social Security's 2027 COLA.
Details
The best way to think about the near-annual Social Security COLA is as the "raise" passed on to beneficiaries to counter the effects of inflation over the last year. If a large basket of goods and services rises in cost by 3% from one year to the next, benefits would have to climb by a matching 3% to avoid a loss of purchasing power. That's where Social Security's COLA comes in.
Source
Originally published at www.fool.com.
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