A projected 3.8% raise in US Social Security benefits in 2027 could act as a 'COLA Trap' for retirees, analysts have warned, by hastening the point at which the programme is forced to slash monthly payouts by about 22% unless Congress steps in.
The estimate, from advocacy group The Senior Citizens League (TSCL), suggests the 2027 cost-of-living adjustment, or COLA, would be larger than the 50-year average and land at a time when Social Security is already paying out more than it takes in.
