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2027 COLA Watch: Beware the “Trump Bump” - The Motley Fool
The recent surge in oil prices has the media aflutter with projections of a substantial increase in next year’s Social Security cost-of-living adjustment (COLA), perhaps as much as 15%. Of course, that’s a good news/bad news story, since COLA reflects cost trends and the adjustment is intended to help seniors catch up with rising prices. But this time around, different factors are at play, one of which is the recent — and, hopefully, temporary — escalation in oil prices and the resulting upswing in pain at the gasoline pump. So, while the speculation is interesting, don’t bank on it yet, since the actual COLA calculation doesn’t necessarily track with what’s happening in the economy outside of the year-to-year third quarter measurement windows. This post by The Motley Fool’s Sean Williams will help explain this point.