There's a 'Trump Bump' Coming to Your Social Security Payment. Here's What That Means
When it comes to Social Security, hearing that benefits may rise should be good news. However, most political analysts say the upcoming cost-of-living adjustment (COLA) is being called a "Trump Bump" because of the president's role in raising payments.
But that's not a good thing for Trump or Americans, since the only reason Social Security recipients are looking at a raise in the new year is that the cost-of-living has risen substantially enough to warrant one. Keep reading to find out what the Trump Bump is expected to look like, and whether or not that will be a good thing or a bad thing for you.
The 2027 COLA Is Being Called a 'Trump Bump'
U.S. News and World Report says that Donald Trump is being credited with the upcoming conversation about a COLA for Social Security recipients. The publication says that the Senior Citizens League has projected a 3.9 percent increase for 2027. That means recipients would receive a 3.9 percent increase in the amount of benefits they were already receiving.
Last year's COLA was 2.8 percent, which the publication says translated into around $56 a month for the average recipient.
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Some Say This Increase Isn't a 'Win'
There's an argument to be made that any increase in Social Security benefits-which the Social Security Administration (SSA) says averages $2,071 a month for retired workers-is a good thing. However, some people say that the increase is an indicator of inflation and the average cost of living.
That's because the SSA uses something called the consumer price index (CPI) to determine how much the cost of living has increased. When prices rise, the CPI goes up, making it harder for seniors to get by on their existing benefits alone.
As for the reason the upcoming COLA has a more politically motivated moniker than usual, well, that has to do with the rising CPI. The most recent index showed that tariffs and the war in Iran are directly affecting current cost-of-living increases. With Trump driving both, it seems financial and political experts made the logical connection between the two.
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When Will the Next COLA be Announced
According to U.S. News and World Report, we won't know exactly what the upcoming COLA will look like until October. Of course, a lot can happen between now and then. And while it seems unlikely that energy prices will come down that quickly, even if the conflict with Iran ended today and the Strait of Hormuz were reopened immediately, plenty of other factors that influence the CPI could change for the better or worse.
As of now, it looks like seniors will see an increase in 2027. Whether it ends up being enough to offset the current cost of living will remain to be seen.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published May 21, 2026 at 1:28 PM.