Social Security's Trump Bump-Led 2027 COLA Is on Pace to Do Something That Hasn't Been Witnessed Since the 1990s
A history-making moment appears to be on the way in 2027, courtesy of President Trump.
Overview
For Social Security's more than 71 million traditional beneficiaries (retired workers, workers with disabilities, and survivors of deceased workers), the wait is almost over. In less than three weeks, on Oct. 14, the U.S. Bureau of Labor Statistics will publish the September inflation report and provide the final puzzle piece needed to calculate Social Security's 2027 cost-of-living adjustment (COLA).
Social Security's COLA represents the near-annual "raise" passed on to beneficiaries to offset the inflation they've faced. For instance, if the cost to purchase a broad basket of goods and services climbs by 3% from one year to the next, Social Security payouts would have to rise by the same percentage to avoid a loss of buying power.
Details
Next year's COLA is shaping up as a history-maker, courtesy of President Donald Trump. It'll mark the second straight year that beneficiaries will see their payouts boosted by a "Trump bump" and feature something no one's witnessed since the 1990s. However, bigger Social Security checks come at a potentially steep cost to America's leading retirement program.
Source
Originally published at www.fool.com.