Social Security 'Trump Bump' Expected Next Year. It's Not All Good News
Experts say beneficiaries may receive one of the larger cost-of-living adjustments (COLA) in recent years in 2027.
U.S. retirees and disabled individuals could experience a significant boost in their Social Security benefits in 2027 due to inflation, according to experts. This anticipated increase, known as the "Trump Bump," may be one of the largest COLA adjustments in recent years, potentially benefiting nearly 75 million recipients. However, financial experts warn that this larger check is merely compensation for the ongoing erosion of purchasing power due to rising consumer prices, rather than a genuine raise in income.
A 3.5 percent to 3.6 percent COLA is projected for 2027 by The Senior Citizens League (TSCL) and AARP, marking the second consecutive year of above-average increases. This would mean an additional $56 per month for the average retirement benefit, equating to roughly $876 in extra funds over the course of a year. Despite the potential benefit, some experts argue that the COLA increase is not a cause for celebration, as it reflects the continuous rise in everyday costs and does not necessarily make retirees better off.
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