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Social Security benefits look poised for a so-called “Trump Bump” in 2027.
But if that sounds like good news, it isn’t.
In fact, some could call it a symptom of President Donald Trump’s failed economic policy and geopolitical misadventures.
That’s because the Trump bump originates from Social Security’s annual cost-of-living adjustment or COLA. Every year, the agency adjusts the benefit payments to keep up with cost-of-living increases, and this year inflation is hot enough to justify a larger adjustment.
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Here’s a closer look at what millions of beneficiaries can expect in the months ahead.
Higher cost of living
Donald Trump’s invasion of Iran and the subsequent closure of the Strait of Hormuz has caused global oil prices to surge. In the U.S., the national average gas price is currently $4.04 according to AAA (1).
Higher fuel prices are having a knock-on effect on all other aspects of the economy, and monthly inflation tripled in March, according to CNN (2). As of July 2026, inflation sits at 3.4%.
High gas prices, inflation, the ongoing trade war and import tariffs on various countries are all working together to squeeze ordinary consumers. Fortunately, retirees who depend on Social Security benefits receive an annual COLA to offset some of this impact.
Is the COLA enough?
With the 2027 COLA announcement expected in October, early projections are coming in higher than the 2.8% raise seniors received in 2026 (3).
The Senior Citizens League (TSCL) (4), a nonpartisan senior advocacy group, currently pegs the 2027 adjustment at 3.3%. Independent Social Security and Medicare policy analyst Mary Johnson similarly predicts it reaching 3.2%, nearly double her pre-Iran war forecast of 1.7% and a notable step up from the 2026 figure, per CNBC (5).
It’s worth noting that these figures are national averages and may not match your reality. If you drive a lot or live in a high-cost city like New York or San Francisco, the official COLA likely understates your actual inflation, meaning you could still lose ground even after the raise hits.
Prepare your finances
For retirees or investors worried about the impact of inflation, gold could help hedge the difference the government’s annual adjustment to benefits doesn’t cover.
Historically, investors have considered this precious metal a safe haven during times of global conflict, uncertainty and inflation.
A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
Periods of high inflation are also a good time to consider how you can protect your retirement savings. The expert advice of a financial adviser can help you optimize your finances and find strategies to ensure your capital is protected even when the cost of living explodes.
A financial advisor can help crunch the numbers and build a plan that works.
But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.
That’s where Advisor.com can come in. The platform connects you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com‘s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.
Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money’s actually going. That starts with the basics — budgeting and tracking your spending.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
AAA (1); CNN (2); U.S. Social Security Administration (3); The Senior Citizens League (4); CNBC (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
