Social Security's Trump Bump-Led 2027 COLA Will Be One of the Largest in 35 Years, but It May Financially Cripple America's Leading Retirement Program
Outsize Social Security raises come with unintended consequences.
Overview
Get your calendars out, because the big day for Social Security's more than 71 million traditional beneficiaries is right around the corner. On Oct. 14, 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 effectively a raise given to beneficiaries to offset the effects of inflation (rising prices) over the last year. For example, if a basket of hundreds of goods and services (regularly purchased by retirees) increases in cost by 2%, Social Security benefits would need to rise by 2% as well to avoid a loss of purchasing power.
Details
While most Social Security raises over the last 35 years have been relatively modest, that's not what's on the menu for 2027, courtesy of President Donald Trump. Unfortunately, larger monthly Social Security checks via a "Trump bump" come at a steep cost for a retirement program that's already struggling.
Source
Originally published at www.fool.com.