Social Security's Trump Bump-Driven 2027 COLA Will Likely Feature a Grim Reality for Beneficiaries
One of the largest Social Security raises of the last 35 years has a dark side.
Overview
Social Security's big day is right around the corner. In just three days, on Oct. 14 at 08:30 a.m. ET, the U.S. Bureau of Labor Statistics will release the September inflation report, providing the final data point needed to calculate Social Security's 2027 cost-of-living adjustment (COLA).
Social Security's COLA is essentially a "raise" given to beneficiaries to offset inflation (rising prices) over the last year. If benefits didn't grow annually on par with inflation, retired workers, workers with disabilities, and survivors of deceased workers would see their Social Security income purchasing power decline over time.
Details
For Social Security's more than 71 million traditional beneficiaries, the program's 2027 COLA should be one of the largest of the last 35 years, thanks in part to a second consecutive year with a "Trump bump." But while larger monthly Social Security checks, courtesy of President Donald Trump, may bring smiles, outsize COLAs come with a grim reality for America's leading retirement program.
Source
Originally published at www.fool.com.