Social Security's 2027 COLA Is on Pace for a Historic "Trump Bump" -- but It Comes With Unintended Consequences
Yahoo Finance ·
It's been a history-packed past year and change for America's leading retirement program. In August, Social Security celebrated its 90th anniversary since its inception, while the average retired-worker benefit surpassed $2,000 for the first time in the program's storied history in May 2025. History was also made on the cost-of-living adjustment (COLA) front this year. Social Security's COLA is the annual raise designed to offset the effects of inflation and ensure beneficiaries don't lose buying power. The 2.8% increase in benefits in 2026 marks the fifth straight year that payouts have risen by at least 2.5%. That hasn't happened in roughly three decades. Next year is shaping up as another historic one for Social Security and its beneficiaries -- for both good and bad reasons. On the one hand, a decision made by President Donald Trump may produce the fourth-largest COLA in 36 years. At the same time, this decision could have dire consequences for Social Security's financial outlook . President Donald Trump delivering remarks. Image source: Official White House Photo. The previously mentioned 2.8% cost-of-living adjustment passed along this year was affected by President Trump's policies. While a modest level of inflation (rising prices) is normal and healthy for the U.S. economy, one decision by the president further increased the COLA received by beneficiaries in 2026.
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