While we adhere to strict editorial guidelines, partners on this page may provide us earnings.
Vishesh Raisinghani
Updated May 21, 2026
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.
Here's a closer look at what millions of beneficiaries can expect in the months ahead.
Is the COLA enough?
Donald Trump's invasion of Iran and the subsequent closure of the Strait of Hormuz has caused global oil prices to surge, driving the U.S. national average gas price to $4.51, according to AAA.
That's a 50% spike since the invasion began in early March, according to NBC News. These climbing fuel prices have triggered a knock-on effect across the economy, causing monthly inflation to triple in March, per CNN.
While this geopolitical disruption and ongoing trade war tariffs are squeezing ordinary consumers, retirees who depend on Social Security benefits receive an annual cost-of-living adjustment (COLA) to help offset the damage.
With the official 2027 COLA announcement expected in October, early projections are coming in notably higher than the 2.8% raise seniors received in 2026.
The Senior Citizens League (TSCL), 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%, per CNBC.
However, these figures are national averages and rarely match everyday reality. If you drive frequently or live in a high-cost hub like New York or San Francisco, the official COLA likely understates your personal inflation rate, meaning your purchasing power could still lose ground even after the extra cash hits your account.
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.
One way to invest in gold that also provides significant tax advantages is to open a precious metals IRA with the help of U.S. Gold Bureau.
This chart shows the price of gold over the past five years. If you want to see whether opening a precious metals IRA is the right investment to diversify your portfolio, download a free info guide.
Precious metals IRAs allow investors to hold physical gold, silver or other related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold and silver, making it an option for those looking to help shield their retirement funds against economic uncertainties. Qualifying purchases can even receive up to $20,000 in free gold.
Maximize your liquidity and fixed cash returns
While physical assets like gold provide an excellent long-term macro hedge, safeguarding your wealth during rapid inflation also requires optimizing your liquid savings and short-term cash reserves.
Moving your money to a high-yield account puts your cash to work immediately. A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%².
That's ten times the national deposit savings rate, according to the FDIC's March report³.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase⁴ with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
For cash that you don't need immediate, day-to-day access to, a Certificate of Deposit (CD) allows you to lock in a high rate upfront. This ensures your earnings stay fixed for a set term, even if market interest rates begin to slip.
For those seeking predictable, reliable growth, a platform like CD Valet can help you find higher-yield options that work for you, whether you’re saving for something soon or building a cushion for the long haul.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
To help you save smarter, CD Valet provides free, specialized tools.
- Earnings calculator: See exactly how much interest you’ll accrue by the end of your term. Adjust different rates and terms to see how much you can earn with a 12-month vs. a 24-month CD.
- CD rates map by state: See real-time offers of the best CD rates across the country. Many institutions allow you to open an online account, so you can take advantage of a great CD rate without being located in that state.
Plus, their CD rates are updated continuously so you can shop, compare and open CDs with ease.
Look at the bigger picture
Allocating a portion of your wealth to precious metals, maximizing your cash APY, and locking in high-yielding CDs are excellent tactical defenses against rising costs.
However, defensive individual assets are only one piece of the puzzle.
Proactively safeguarding your long-term purchasing power requires shifting from a collection of separate accounts to an overarching strategy that views all of your financial buckets — from real estate and investments to your cash reserves and 401(k) — as a whole.
That high-level coordination becomes even more critical once your portfolio reaches the $250,000 mark. At this level, balancing inflation hedges, optimizing tax strategies, and structuring long-term income planning can have a massive impact on your ultimate retirement outcome.
Instead of trying to manage a scattered collection of accounts yourself during economic shifts, platforms like WiserAdvisor can connect you with vetted, reputable professionals who specialize in this kind of comprehensive planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
Vishesh Raisinghani
Freelance Writer
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.
Explore the latest articles
Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.
