Social Security's Trump Bump-Driven 2027 COLA Is Shaping Up as a Good-News/Bad-News Scenario
Outsize Social Security raises come with a silver lining for tens of millions of retirees, but also the potential for serious consequences.
Overview
One of the most anticipated days of the year for Social Security's more than 71 million traditional beneficiaries (retired workers, workers with disabilities, and survivors of deceased workers) is less than four weeks away.
On Oct. 14, the U.S. Bureau of Labor Statistics will publish the September inflation report, providing the final puzzle piece needed to calculate and announce Social Security's 2027 cost-of-living adjustment (COLA). Social Security's COLA is the near-annual "raise" passed on to Social Security recipients that accounts for inflation (i.e., rising prices).
Details
Since the Consumer Price Index for Urban Wage Earners and Clerical Workers became Social Security's inflation-measuring yardstick in 1975, beneficiaries have received a raise in all but three years (2010, 2011, and 2016). However, next year's payout hike will feature something relatively unique: a "Trump bump."
Source
Originally published at www.fool.com.