Social Security's Trump Bump-Driven 2027 COLA Is on Track to Make History 3 Different Ways
Donald Trump’s policies are directly affecting consumer prices and lighting a fire beneath Social Security’s projected raise for the upcoming year.
Overview
The wait is nearly over for Social Security's more than 71 million traditional beneficiaries. In less than two weeks, on Oct. 14, the release of the September inflation report will provide the final data point needed to calculate Social Security's 2027 cost-of-living adjustment (COLA).
In simple terms, Social Security's COLA is the near-annual raise given to recipients to offset the inflationary pressures they've faced over the last year. For instance, if a broad basket of goods and services regularly bought by seniors rises in cost by 3% from one year to the next, Social Security benefits would need to increase by the same percentage to avoid a loss of buying power. Social Security's COLA is the mechanism that combats a loss of purchasing power over time.
Image source: Official White House Photo by Daniel Torok.
Details
Source
Originally published at www.fool.com.