May 13, 2026
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Social Security benefits look poised for a so-called "Trump Bump" in 2027. 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 $4.51, according to AAA (1). That's up 50% since the invasion began in early March, according to NBC News (2).
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 (3).
This disruption, coupled with the ongoing trade war and import tariffs on various countries, is squeezing ordinary consumers. Fortunately, retirees who depend on Social Security benefits receive an annual COLA to offset some of this impact.
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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 (4).
The Senior Citizens League (TSCL) (5), 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 (6).
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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. Now, you can add exposure to gold with added tax benefits through Priority Gold.
The platform allows you to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
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.
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That's where Advisor.com can help. The platform connects you with an expert near you for free.
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Just enter a few details about your finances and goals, and Advisor.com's matching tool will connect you with a qualified expert best suited to your needs and unique financial goals.
Deciding on 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, so you can find the right fit for you.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
AAA (1); NBC News (2); CNN (3); U.S. Social Security Administration (4); The Senior Citizens League (5); CNBC (6)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
