In 4 Days, Social Security's Trump Bump-Led 2027 COLA Should Produce its First Silver Lining Since 2023 for Tens of Millions of Retirees

Key Points:

• Up to 90% of retirees depend on Social Security income to cover at least part of their expenses, making the annual cost-of-living adjustment (COLA) announcement highly anticipated.
• Social Security's 2027 COLA is expected to be unusually large, around 3.5%, due to inflation driven by President Trump's tariffs and the Iran war's impact on energy prices, marking one of the biggest raises in 35 years.
• This raise would tie for the sixth-largest COLA since 1993 and continue a rare streak of six consecutive years with increases of at least 2.5%.
• For nearly 29 million retirees enrolled in traditional Medicare, the 2027 COLA increase is significant because Medicare Part B premiums, which are deducted from Social Security benefits, are projected to rise by only 3.25%, less than the COLA increase.
• This would be the first time since 2023 that Social Security's COLA outpaces the rise in Part B premiums, allowing retirees to retain more of their benefit increase—a rare and positive development.