Social Security's 2027 COLA Is on Pace to Be Historic and Devastating, Courtesy of President Donald Trump
Written by Sean Williams for The Motley Fool -> Two of President Trump's decisions have boosted the U.S inflation rate and Social Security's 2027 cost-of-living adjustment (COLA) estimate. However, beefier Social Security benefits pose a problem for a program whose asset reserv
Two of President Trump's decisions have boosted the U.S inflation rate and Social Security's 2027 cost-of-living adjustment (COLA) estimate.
However, beefier Social Security benefits pose a problem for a program whose asset reserves are dwindling.
Additionally, Trump's flagship tax and spending law, the "Big, Beautiful Bill," can speed up the timeline to sweeping Social Security benefit cuts.
Last year was filled with history-making moments for America's leading retirement program, Social Security . In addition to Social Security celebrating its 90th "birthday," 2025 marked the first time that the average monthly retired-worker benefit exceeded $2,000.
History was made this year, as well, with a fifth consecutive year in which Social Security's cost-of-living adjustment (COLA) met or surpassed 2.5% -- something that hadn't been witnessed in almost three decades. Social Security's COLA is essentially the annual raise given to beneficiaries to counter the effects of inflation (rising prices) and prevent a loss of purchasing power.
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Early independent estimates suggest that Social Security's 2027 COLA will be historically high , thanks in part to decisions made by President Donald Trump. However, a beefier raise comes with potentially devastating consequences for America's top retirement program.
President Trump delivering remarks. Image source: Official White House Photo by Joyce N. Boghosian.
