Social Security's Trump Bump-Led 2027 COLA Should Have Its First Silver Lining Since 2023, but There's a Steep Price to Pay for This Victory
Outsize Trump bumps can shorten the timeline to sweeping Social Security benefit cuts.
Overview
For the nearly 55 million retired workers who took home a Social Security benefit in July, there are few, if any, announcements more anticipated than the annual cost-of-living adjustment (COLA) reveal in October. A quarter-century of Gallup surveys shows that 80% to 90% of retirees rely on their Social Security income, in some capacity, to make ends meet.
Social Security's COLA is essentially a "raise" given to beneficiaries annually to offset the effects of inflation. For instance, if a broad basket of goods and services regularly purchased by seniors increases in cost by 2% from the previous year, Social Security benefits would need to rise by the same percentage to avoid a loss of buying power.
Details
Social Security's 2027 COLA is setting up as something of a good news/bad news event. While tens of millions of retirees should enjoy their first silver lining since 2023, courtesy of a "Trump bump," there's a potentially steep price to pay for these individuals and Social Security as a whole.
Source
Originally published at www.fool.com.