Higher social security payouts for Americans in 2027 may put the retirement programme at risk

US President Donald Trump's policies have increased inflation, raising projected Social Security payouts for 2027.

The 2027 COLA is estimated between 3.7% and 3.8%, the fifth highest in 36 years, according to The Motley Fool and The Senior Citizens League.

Higher payouts could drain the Social Security fund's reserves faster than forecast, threatening the retirement program.

In 2025, average monthly benefits exceeded $2,000 for the first time since the Social Security Act was signed in August 1935.

For 2026, beneficiaries received a 2.8% COLA increase due to Trump's trade and tariff policies; 2027 is projected higher due to new tariffs and the US-Iran war.