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Nearly 75 million Americans could be closing in on a second consecutive “Trump Bump” in 2027 — and the latest projections suggest it could extend a historic streak.
The potential boost would come through Social Security’s annual cost-of-living adjustment (1), or COLA. The annual adjustment is designed to help protect beneficiaries’ purchasing power as the cost of essentials such as food, housing and healthcare rises.
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The Trump connection comes down to inflation. His tariff policies helped put upward pressure on prices in 2025, contributing to the inflation reflected in the 2026 COLA. Fresh tariffs and the inflationary fallout from the conflict with Iran — particularly its impact on energy prices — are now helping keep inflation elevated heading into the 2027 calculation.
In 2026, Social Security and Supplemental Security Income (SSI) benefits for 75 million Americans increased by 2.8% (2). On average, retirement benefits increased by about $56 a month (3) beginning in January.
Now, estimates suggest an even bigger increase could be coming soon.
The Senior Citizens League (TSCL) currently projects a 3.6% (4) COLA for 2027, while AARP expects a slightly smaller 3.5% (5) raise.
AARP noted that the average retired worker received about $2,086 a month in July 2026. A 3.5% increase would add roughly $73 to that amount, bringing the average monthly benefit to approximately $2,159. That works out to about $876 in additional benefits over the course of a year.
But the final number is still up in the air.
Social Security’s COLA is determined by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during July, August and September with the average from the same three-month period a year earlier. Only July’s data has arrived so far, meaning the August and September inflation reports could still move the projection in either direction.
The Social Security Administration is expected to announce the official increase in October.
What makes this potential raise historic isn’t just its size. A COLA of 3.5% or 3.6% would mark the sixth consecutive year in which benefits have increased by at least 2.5% — a streak not seen in roughly three decades.
The latest inflation data helps explain why projections remain elevated. In July, the CPI-W was up 3.4% from a year earlier, according to the Bureau of Labor Statistics (6). Energy prices rose 14.7% over the same period, with gasoline surging 24.6%.
That underscores the uncomfortable truth behind any big COLA: Retirees receive more money because their cost of living has gone up.
But a larger check doesn’t necessarily mean greater purchasing power. The adjustment is designed to help beneficiaries keep pace with inflation, not move ahead of it — which is particularly important for the 44% (7) of U.S. retirees who say they rely solely on Social Security as their source of income, according to a 2026 TSCL survey.
So, for any retirees concerned that rising costs could continue eating into their income, it may be worth looking beyond Social Security alone.
Protect your retirement savings from inflation
The projected “Trump Bump” is a reminder that inflation can cut both ways.
Higher prices may lead to a larger Social Security check, but they can also reduce what each dollar can buy. And unlike Social Security benefits, the cash sitting in a savings account doesn’t automatically receive a cost-of-living adjustment.
That’s one reason investors have long turned to gold to preserve their purchasing power. Its appeal is simple: Unlike fiat currencies, the precious yellow metal can’t be created at will by central banks. Its inherently limited supply has helped it serve as a store of value over time.
Gold is also considered the ultimate safe haven, providing diversification when geopolitical uncertainty rattles financial markets. The war with Iran, disruption to global energy supplies and uncertainty surrounding tariffs have all reinforced the appeal of assets that aren’t directly tied to corporate earnings or government-issued currency.
If you’re looking to diversify your retirement portfolio with this safe haven asset, one way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold. This makes it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.
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.
Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going
Add another source of retirement income
Inflation protection is only part of the equation. Retirees also need income — particularly if Social Security doesn’t cover all of their monthly expenses.
Real estate can potentially address both needs.
Property values and rents may rise over time as the cost of labor, materials and housing increases. At the same time, rental properties can generate recurring income that helps supplement Social Security benefits.
But becoming a landlord isn’t always practical in retirement. Buying a property requires substantial up-front capital, while maintenance, vacancies and tenant issues can turn an ostensibly passive investment into another job.
The good news? You don’t need to buy a property outright — or deal with late-night tenant calls— to invest in real estate today. You can tap into this market by investing in shares of vacation homes or rental properties through platforms like Arrived, which offers an easier way to get exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
The process is simple: To get started, all you have to do is browse through a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Plus, for a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.
Work with an expert
At the end of the day, everyone’s financial situation is different. Determining how Social Security fits alongside your savings and investments requires a broader view of your retirement plan.
Especially, for investors with larger portfolios, those decisions can become increasingly nuanced. Coordinating withdrawals, minimizing tax exposure and generating sustainable income may require careful planning as retirement approaches.
In these situations, working with a financial advisor can help bring the different pieces of your financial life together — and help you avoid costly mistakes.
If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of 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.
Make your retirement dollars go further
Finally, as you get closer to retirement, every dollar starts to matter more. Rising healthcare costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you’re trying to plan for decades ahead.
That’s why you might want to consider joining senior-focused organizations like AARP for discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
As one of the most trusted organizations for older Americans, AARP not only offers money-saving perks, but they can also help you make informed financial and health decisions.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
Sign up with AARP today and get 25% off your first year.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Congress.gov (1); Social Security Administration (2), (3); Seniors League (4), (7); AARP (5); Bureau of Labor Statistics (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
