A ‘Trump Bump’ to Social Security Is Coming in 2027—With a Catch

On Wednesday, the Social Security Administration announced that Social Security benefits will go up 3.6% in 2027, about $75 a month for the average retired worker. But the increase exists only because everyday costs have climbed, and for retirees who own homes, expenses from heating oil to utilities may be rising faster than the adjustment.The cost-of-living adjustment, or COLA, takes effect almost every year to account for inflation—and this adjustment is one of the biggest in years. Some financial commentators have dubbed it a “Trump bump.” However you frame it, recipients should look closely at what the increase will actually cover, especially those who rely on their payments for the costs of homeownership.The details of the COLAAbout 76 million Americans receive either Social Security or Supplemental Security Income, or both. Each year, the SSA reviews government inflation data—specifically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—and calculates how much to increase those benefits to reflect the changing cost of living, from the price of food and transportation to healthcare and housing. Beneficiaries will start seeing the increase in their J...