Social Security's Trump Bump-Driven 2027 COLA Has a Rare "Bonus" for 29 Million Retirees
The first silver lining since 2023 may await tens of millions of retirees.
In 2027, Social Security beneficiaries aged 55 million will receive one of the largest raises in 35 years, thanks to the economic policies of President Donald Trump. The annual cost-of-living adjustment (COLA) will increase by 3.6%, marking it as the fifth-largest raise since 1993. The average retired worker will see their monthly benefit increase by $75, while workers with disabilities can expect an extra $59 per month.
The boost in benefits is a direct result of President Trump's policies, which have driven up inflation. This COLA is expected to surpass previous increases like the 4.1% in 2006 and the 5.9% in 2022. In addition to the COLA, about 29 million retirees enrolled in traditional Medicare may receive a rare bonus. This is because Medicare's Part B premium, which retirees pay for outpatient services and prescription drugs, is only estimated to rise by $6.60 per month or 3.25% in 2027.
This is the first time since 2023 that Social Security's COLA is projected to rise higher than Medicare's premium increase, allowing retirees to retain more of their annual COLA.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
